Updated: Sep 2, 2010 7:08 AM EDT
Options
Khouw (212) 829-7028
HTZ (9.04+.53) Bullish: buyer of 5,000 Jan11 10.0 calls at 1.00. This follows yesterdays bullish activity when someone paid ~ .10 for 5,000 jan11 7.5/10 risk reversals (bot 10.0 strike calls, sld 7.5 strike puts.)
BRCD IBM and HPQ being mentioned as potential acquirers, most active are the April and Oct 6 strike calls trading 17k+ ad 18k+ contracts respectively. Bullish.
BKC traded over 11.7x avg daily volume, company reportedly considering putting itself up for sale. First stories of 3I as potential acquirer faded, then replaced with a WSJ that mentions 3G instead. Most active were the Sep and Oct 20 calls. Bullish.
CMI traded almost 5x avg daily volume and is up 8.65% S&P raises rating from BBB to BBB+, Morgan Stanley Global Industrials Unplugged Conference today. Most active were Sep and Oct 75, 80, and 85 strikes, both calls and puts.
CY lots of put activity in Cypress Semi trades 7.6x avg daily options volume, however it appears that it might be of a more bullish bent, as these appear to be sales of Dec, Jan and Mar 10 and 11 strike puts.
Options volumes picked up sharply to over 13mm contracts. Below the avg daily for the year, but above the mtd avgs, as implied vols fell. Spot VIX and the front month future falling ~ 2 pts. Other than some retail sales #’s, there’s little remaining stock specific catalysts framing options trades for this week, ahead of the broader employment data. Other than the names highlighted above, little among the most actives of note, mostly the usual suspects chief among them AAPL on today’s event. Mostly weekly and Sep ATM options trading as bullish bets narrowly beat out the bearish ones as options traders tried to digest the bottom line for Apple TV, a new iPod line, new iTunes w/social network and a iOS 4.2. Seems like a lot to digest, but the stk’s performance has essentially mirrored the market for the past 20 trading sessions, today included.
Disclaimer: Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ