STOCKS NEWS US-Option bears in Potash brace for more declines

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1756 ET 08June2009-Option players scoop up Potash bearish puts
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U.S.-listed shares of Potash Corp of Saskatchewan (POT.N) fell 1.49 percent
to $111.94 on Monday. In the options market, bearish investors were seen
bracing for more downward movement in the world's largest fertilizer company
through July expiration, said Interactive Brokers Group market analyst Andrew
Wilkinson in a note to clients. Some 15,000 protective puts were earlier bought
at the July $95 strike for $3.69 apiece. "Pessimistic traders long the puts
will begin to amass profits to the downside given declines of 18 percent in the
stock," he said. These investors begin to amass profits at the break-even point
at $91.31. Further evidence of bearishness was the sale of 2,000 in-the-money
calls at the July $110 strike price for a premium of $9.68 per contract spread
against the purchase of 2,000 puts at the lower July $105 strike for $7 each
for a net credit of $2.68, he added.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1438 ET 08June2009-McDonald's draws big put seller as shrs dip
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One option player appears to be taking advantage of the pullback in
McDonald's Corp (MCD.N) which boosted the value of the stock's put options.
McDonald's posted softer-than-expected May sales at U.S. restaurants open at
least 13 months, sending shares of the world's biggest hamburger chain lower.
The stock fell 2.44 percent to $58.41 in afternoon trade. "The MCD ticker
symbol edged onto our 'most active by options volume' market scanner after a
chunk of put options traded in the December contract," said Andrew Wilkinson,
senior market analyst at Interactive Brokers Group. Wilkinson said it appeared
oneinvestor sold 10,000 puts short at the December $50 strike for a premium of
$2 per contract. The investor enjoys the premium for writing the puts and
stands ready to have shares put to him at an effective price of $48 apiece
should the puts land in-the-money by expiration. Shares would need to fall by
about 15 percent from the current price for the puts to land in-the-money.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1302 ET 08June2009-Angiotech advances after FDA clearance
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Shares of Angiotech Pharmaceuticals (ANPI.O) soared on Monday, after the
company received marketing clearance from the U.S. Food and Drug Administration
for its implantable device to prevent pulmonary embolism, sending its shares up
as much as 60 percent.

The FDA clearance is a bright spot for Angiotech, which this year said a
continuing fall in revenue from its stents could force it to seek alternative
funding sources. It said it might consider debt, equity or other securities
offerings, as well as to consider reorganization, restructuring or other
strategic alternatives.

For details, see [ID:nBNG498196]

U.S.-listed shares of the company surged 39 percent to $2.37 on Monday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1253 ET 08June2009 Health reform looms: Buy XLV puts to hedge: Goldman
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Health care reform looms; buy put options in the Health Care Select Sector
SPDR Fund (XLV.P) to hedge or gain downside exposure and capture a potential
rise in volatility and correlation, said Goldman Sachs derivative strategists
in a note. "Our Healthcare Research team believes healthcare reform legislation
is likely to pass this year, which has the potential to meaningfully reduce
profitability for much of the sector," Goldman said. With healthcare reform
expected to negatively impact sub-sectors that account for 90 percent of the
exchange-traded fund, the strategists see potential for notable downside
volatility. XLV December $24 puts look attractive with shares at $25.66. This
costs $1.20 and profits at December expiration if shares are below $22.80, they
said. Goldman estimates the trade would break even by September expiration if
shares fell about 3 percent and volatility returned to levels reached during
the budget announcement. Investors who buy XLV puts risk losing the premium
paid if XLV ends above the strike price at expiration.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1213 ET 08June2009 RenaSola call options shine as shares jump
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U.S.-listed shares of solar wafer manufacturer ReneSola Ltd (SOLA.L)
(SOL.N) jumped 7.57 percent to $6.68 near midday. In the options market,
bullish traders on the China-based company looked to the July $7.50 calls as
6,520 contracts traded earlier, nearly all on the ask-side, said
WhatsTrading.com option strategist Frederic Ruffy. The strike's volume exceeded
the existing open interest, indicating fresh positioning. It also appeared
opening call buyers scooped up the June $7.50 and July $10 calls. There was no
apparent news. It was tough to figure out what was driving the stock, said Pete
Najarian, a founder of optionMonster.com in comments on the firm's Website.
OptionMonster's computer model also detected call buying in ReneSola's upside
calls. During the first half of the session, about 14,000 calls and 513 puts
traded, seven times the normal combined daily volume, Trade Alert data show.

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

1154 ET 08June2009-Diodes rises after increased revenue outlook
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Shares of Diodes Inc (DIOD.O) rallied on Monday, after the semiconductor
supplier raised its second-quarter revenue outlook, citing improvement in
demand and order rates, primarily in Asia.

It now expects second-quarter revenue to increase 22 percent to 30 percent
sequentially. Its prior view was an increase of 14 percent to 22 percent.

For details, see [ID:]

The stock gained 1.7 percent to $15.95, and hit a session high of $17.20
earlier in the day.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net