STOCKS NEWS US-Players flock to commodity ETF calls

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]

U.S. stock market report [.N]
1336 ET-28Jan2009 Traders load up on call options in commodity ETF
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Volume in the PowerShares DB Commodity Index (DBC.P) ran 40 times the
normal level with about 38,000 calls and 1,256 puts traded, according to Trade
Alert. The exchange-traded fund tracks the price action of crude oil, heating
oil, aluminum, gold, corn and wheat and was up 2.18 percent to $20.58 in
afternoon trade. In the March $21 call strike, 34,180 contracts traded vs 4
contracts of existing open positions. "While a lot of the trades hit bid-side,
about 17,000 traded on the ISE (International Securities Exchange) and ISEE
Sentiment data suggests that 82 percent is opening customer buy orders, said
WhatsTrading strategist Frederic Ruffy.

Reuters Messaging: doris.frankel.reuters.com@reuters.net

1322 ET-28Jan2009 Put volume swells in Royal Caribbean on Barclays
downgrade
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Royal Caribbean Cruises Ltd (RCL.N) (RCL.OL) popped up on option traders'
radar screens after a research note from Barclays Capital sent "a shot across
the bows warning that investors perhaps did not understand the impact of the
credit crunch on the cruise business," said Andrew Wilkinson, market analyst at
Interactive Brokers Group in a note. It dropped its price target from $20 to
$1, which caused shares to slide 12.12 percent to $9.14 in afternoon trade. In
response, Wilkinson said the equity's option implied volatility surged by
around 20 percent to 117 percent as put buyers lifted contracts to the ask side
of the market. Both Feb and March $7.50 strike puts were bought and he said it
would be no surprise if by the end of the day the volume at each strike exceeds
the established number of open puts. The Feb $5 strike puts were also purchased
at 15 cents after the announcement.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1314 ET 28Jan2009-Markets up on optimism over bank plan progress
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Major U.S. indexes rose on Wednesday as investors bet that the Obama
administration was making progress on a plan to stabilize the banking industry
by removing money-losing assets from their books. The top four percentage
gainers on the Dow were banking companies: Citigroup (C.N), JPMorgan Chase
(JPM.N), Bank of America (BAC.N) and American Express (AXP.N), a credit card
company that is also a bank holding company. [ID:nN28354639]

The Dow Jones industrial average .DJI rose 1.7 percent to 8,312.29 while
the S&P 500 .SPX gained 2.7 percent to 868.18 and the Nasdaq .IXIC was up
3.2 percent to 1,552.99.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1301 ET 28Jan2009-Pfizer down ahead of release of results
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Shares of pharmaceutical company Pfizer Inc (PFE.N) fell on Wednesday,
topping the percentage decliners list for the Dow Jones industrial average
.DJI ahead of its first-quarter results.

For the quarter, the Reuters Estimates are for earnings of 53 cents a share
and revenue of $11.28 billion. In the year-ago period, the company posted
earnings of 61 cents a share and revenue of $11.85 billion.

Shares of Pfizer slid 3.7 percent to $15.24. It is scheduled to report its
results after the bell on Wednesday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1242 ET-28Jan2009-Goldman suggests sell Lam Research and KLA-Tencor strangles
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With option prices near a five-year high, investors should consider selling
February strangles in Lam Research (LRCX.O) and KLA-Tencor (KLAC.O) to capture
attractive premium, said Goldman Sachs strategists. "Pre-announcements and peer
results make upcoming earnings an unlikely catalyst for our analyst's bullish
outlook and will likely keep shares near current levels," they said. With Lam
shares at $22.42, they recommend selling Feb $20/$25 strangles for $1.15 to
position short volatility ahead of preannounced earnings and set break evens of
+/-16 percent through expiration. In KLA-Tencor, they suggest selling Feb
$17.50/$22.50 strangles for 80 cents. With shares at $19.70, the strategy
positions short implied volatility at historically high levels with break evens
of $16.75 and $23.25 over the next month, they said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1222 ET 28Jan2009-GM evaluating options for small engine production
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A spokeswoman for General Motors (GM.N) on Wednesday said the company had
suspended some construction contracts for a $370 million Flint engine plant. It
also said it was evaluation options for small engine production. [ID:nWEN3405]

Shares of GM, a Dow component, rose 0.6 percent to $3.37 on Wednesday. The
stock has been battered by the recession, which has weighed on consumer
spending.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1217 ET 28Jan2009-Northern Trust: no exposure to Madoff
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Northern Trust Corp (NTRS.O) on Wednesday said it had no direct exposure to
Bernard Madoff, or any other recently uncovered frauds, though some of its
clients have been affected by the alleged $50 billion Ponzi scheme.

Shares of the financial services company rose 5.7 percent to $59.31 on
Wednesday. [ID:nWEN3401]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1210 ET-28Jan2009-Health Net calls rise on takeover talk -analyst
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Health Net Inc (HNT.N) call option volume surged on renewed takeover
speculation, said Paul Foster, options strategist at theflyonthewall.com.
Shares of the insurer rose 6.31 percent to $15.83 near midday. In the options
market, the equity's volume was 14 times the usual level with 8,866 call
options and only 659 puts traded, according to Trade Alert. "We do not comment
on market speculation," a Health Net spokeswoman said. Health Net has attracted
unusual options action, perhaps along with WellPoint, which reversed early
losses, said WhatsTrading.com strategist Frederic Ruffy. WellPoint shares
advanced 6.05 percent to $45.20 after reporting a drop in quarterly profit.
Ruffy cited active buying of Health Net calls in the February and March $17.50
strikes. It is due to report results on Feb. 3.

Reuters Messaging: doris.frankel.reuters.com@reuters.net