Sr. Correspondent, Broker Research, Bangalore, India
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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

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.

Mar 2, 2015

Bullish bets on dollar ETF surge ahead of ECB meeting

NEW YORK, March 2 (Reuters) – The options on a popular
exchange-traded fund that allows investors to bet on the
strength of the dollar attracted an unusually high volume of
bullish bets on Monday, ahead of this week’s European Central
Bank meeting.

PowerShares DB Bullish Dollar Index Fund’s, which
tracks the value of the U.S. dollar relative to a basket of the
six major world currencies, has gained about 5 percent this year
and on Monday hit a high of $25.26, the highest it has been
since June 2010.

Feb 27, 2015

CBOE to expand VIX options trading hours from Monday

NEW YORK, Feb 27 (Reuters) – CBOE Holdings Inc’s
Chicago Board Options Exchange, the largest U.S. stock-options
market, is set to extend trading hours for two of its most
heavily traded index options starting Monday.

The exchange plans to add more than six hours of additional
trading five days a week for options on the S&P 500 and
the CBOE VIX index, a broadly used gauge of market
volatility based on U.S. equity option prices.

Feb 24, 2015

Transocean shares poised for big move after results

NEW YORK (Reuters) – Transocean Ltd (RIG.N: Quote, Profile, Research, Stock Buzz) shares are expected to move about 8 percent in either direction following its earnings results on Wednesday, options data showed, but positioning among traders suggests some worry.

This would be the biggest post-earnings move for the shares in at least eight quarters.

Feb 20, 2015

Bearish bets surge on Amira Nature Foods ahead of results

NEW YORK (Reuters) – Amira Nature Foods Ltd’s options have been unusually active since a short-seller published a report casting doubts on the company’s financials, and bearish bets on the stock have surged ahead of Amira‚Äôs quarterly results due on Monday.

The company, which gets most of its revenue from the sale of basmati rice, suffered its biggest one-day drop in share price on Feb. 9 after a short-selling firm, Prescience Point Research, said the company had fabricated its financial statements.

Feb 19, 2015

Options traders bet on growing U.S. demand for cyber security

NEW YORK, Feb 19 (Reuters) – A barrage of damaging cyber
attacks has shaken up the security industry, and traders in the
options market are betting on cyber security companies
benefiting from increased spending as governments and
businesses boost security.

Cyber security has become a major concern for U.S. firms
with recent high profile data breaches reported at Sony Pictures
Entertainment, Target Corp, Home Depot Inc
, and most recently at health insurer Anthem Inc.

    • 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:
      English, Hindi, Bengali
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