Hartford Courant
... price â€" a 22 percent premium over Black & Decker's closing price, before the deal was announced. Shares were in the $57 range in after-hours trading.
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There was elevated options activity in the Financial Select Sector SPDR (NYSE: XLF) June put action is picking up as financials sell off and 253,000 puts trade against 81,000 calls in the ETF. Large trades include a 20,000 contract June $11/$10 put spread and a buyer of 20,000 June $14 puts. March $14/$11 ratio put spreads are also active on the day. Near days end 407,000 puts have traded including a 3:35 pm June $14/$10 ratio put spread for 38,500X77,000 contracts looking for volatility to decrease and shares to head lower in the next 8 months. Large components include BAC, JPM, and WFC.
Joe Kunkle, OptionsHawk.com
Research-in-Motion Ltd. (NASDAQ: RIMM) shares are weak in a strong tape, down 5.4%, due to a downgrade to Sell at Citigroup. Implied volatility is up 10% on the day and option traders are active with 93,000 calls and 59,886 puts trading just two hours into trading. The volume has already surpassed the average daily volume and is mixed between buyers and sellers in both the calls and puts. One notable bullish trade was a new opening buyer at the $0.24 offer for 15,000 March $100 calls that are way out of the money, a lotto ticket type bet. Most of the other action is retail traders with some looking for a continued move lower and others buying on the dips looking for shares to be defended. Shares are now trading at a PEG of 0.8X and are historically cheap on an earnings basis for the Blackberry maker.
Joe Kunkle, OptionsHawk.com
Dendreon Corp. (NASDAQ: DNDN) is trading higher on word from the company that it has filed its new drug application with the FDA for PROVENGE to treat prostate cancer. The notion of the filing is not new, although many were not expecting this filing to be submitted until later in November or in December. At 8:44 AM EST we have seen 250,000 shares trade hands and the last print seen was up 6.8% at $27.00 after a $25.27 close on Friday. Average volume is almost 3 million shares, but it is usually much higher trading volume on days with news.
JON C. OGG