Sr. Correspondent, Broker Research, Bangalore, India
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Apr 15, 2015

Altera deal story far from over, options data suggests

NEW YORK (Reuters) – Discussions on a takeover by Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) of smaller chip maker Altera Corp (ALTR.O: Quote, Profile, Research, Stock Buzz) may have ended for now, but activity in Altera’s options suggests traders are still hoping for a deal.

Altera shares, which jumped as much as 30 percent to $45 on March 27 on reports of a potential deal, have held most of those gains and the company’s options continue to imply a huge move for the shares in the near term. The shares were trading up 2 percent at $43.29 on Nasdaq on Wednesday.

Apr 8, 2015

Perrigo options attracted large bullish bet ahead of Mylan offer

NEW YORK (Reuters) – Perrigo Co Plc’s (PRGO.N: Quote, Profile, Research, Stock Buzz) options attracted an unusually large bullish bet days ahead of an offer from generic drugmaker Mylan NV (MYL.O: Quote, Profile, Research, Stock Buzz) to buy the company, options data shows.

On Wednesday, Mylan said it made a proposal to acquire Perrigo for about $29 billion in cash and stock, sending the Dublin, Ireland company’s shares up by more than 30 percent to an all-time high of $215.73. Mylan shares rose as much as 16 percent to a high of $69.45.

Apr 8, 2015

U.S. stocks’ volatility expectations muted ahead of earnings

NEW YORK (Reuters) – Investors are staring at the first quarterly decline in U.S. corporate profits in six years – but the message coming out of the options market for now is not to worry.

Earnings reporting seasons are typically choppy periods for stocks, but the number of S&P 500 companies expected to see a jump in volatility is lower than where it stood a year ago or even at the same point in 2013, according to a Reuters analysis of options data.

Mar 27, 2015

Big win for Altera call buyers on talk of Intel deal

NEW YORK (Reuters) – News that chipmaker Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) is in talks to buy Altera Corp (ALTR.O: Quote, Profile, Research, Stock Buzz) sparked a flurry of trades in its short-term calls and could spell huge gains for some timely buyers of the options.

Altera’s shares jumped as much as 30 percent to a high of $45 on a Wall Street Journal report of talks toward a deal.

Mar 25, 2015

Accenture options bearish ahead of results as currency woes weigh

NEW YORK, March 25 (Reuters) – Accenture Plc’s
options have attracted bearish bets in recent days, as investors
appear concerned about the effect the stronger dollar will have
on the consulting and outsourcing company’s business outlook.

The company, which reports quarterly results on Thursday,
saw its shares fall 1.34 percent to $88.21 on Wednesday.

Mar 25, 2015

Windfall in options trade in Kraft-Heinz deal

NEW YORK, March 25 (Reuters) – One trader’s bullish bet in
Kraft Foods Group Inc’s options is set to turn a
$700,000 bet into a possible paper profit of as much as $19
million.

The company’s proposed merger with ketchup maker H.J. Heinz
Co sent shares of the maker of Velveeta cheese up by more than
40 percent – but the gains pale in comparison to the jump in the
value of its options.

Mar 17, 2015

Alibaba options show investors wary ahead of lock-up expiration

NEW YORK, March 17 (Reuters) – Alibaba Group Holding Ltd’s
blockbuster IPO has been followed by a steady slide in
its stock price, which options market players do not expect to
abate, with nearly a fifth of its shares to be released for
trading on Wednesday.

The Chinese e-commerce giant’s stock soared after it first
went public in September, but the party didn’t last. Trading
just above $84 on Tuesday, the stock has dropped 29 percent from
an all-time closing high of $119.15 in November on concerns
about slowed growth in China and fake items on its website.

Mar 11, 2015

Investors bearish on Lumber Liquidators before company update

NEW YORK/WASHINGTON (Reuters) – Lumber Liquidators Holdings Inc is expected to address claims that its flooring products contain dangerous levels of a cancer-causing substance on an analyst call on Thursday, but with the company now under regulatory scrutiny investors are skeptical it will be able to stem the slide in its shares.

The hardwood flooring retailer’s shares have lost more than half their value in the last two weeks, following a March 1 report from CBS’s “60 Minutes” alleging the company sold flooring with higher levels of formaldehyde, a known carcinogen, than permitted.

Mar 10, 2015

ETF tracking the euro draws $37 million bearish bet

NEW YORK (Reuters) – A trader in the U.S. options market placed a $37 million bet against the euro on Tuesday, even as the dollar hit a multi-year high against the currency.

A trader bought put options on the Guggenheim CurrencyShares Euro Trust (FXE.P: Quote, Profile, Research, Stock Buzz), the most actively traded equity product for euro exposure, betting the euro will keep falling against the dollar.

Mar 4, 2015

Bullish bets seen as options market readies for June Obamacare ruling

NEW YORK, March 4 (Reuters) – Options on U.S. hospital
companies were unusually active on Wednesday, with bets leaning
to the bullish side as the U.S. Supreme Court heard arguments on
a major challenge to President Barack Obama’s healthcare law.

Shares of major hospital operators rose as investors
interpreted comments made by Supreme Court justices during
arguments as favorable toward upholding the Affordable Care Act,
commonly known as Obamacare.

    • About Saqib

      "Saqib Ahmed is an options correspondent working with the Markets team in New York. He previously led the Reuters Broker Research team in Bangalore. He joined Reuters in 2009 after graduating from the Asian College of Journalism."
      Joined Reuters:
      2009
      Languages:
      English, Hindi, Bengali
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