STOCKS NEWS US-Wells Fargo put volume builds as shares fall

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1520 ET 17June2009 Wells Fargo puts become popular, draws put spread
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Wells Fargo & Co (WFC.N) option volume was three times the norm with about
186,000 puts and 143,000 calls traded, three times the norm, according to Trade
Alert. Put volume was up this morning after a significant spread populated the
July contract. "The WFC July put activity has been extreme this morning as
buyers of the WFC July $24-$19 put spread make up the bulk of the extreme paper
lighting up the Depth Charge (computer model)," said Pete Najarian, a
co-founder of optionMonster.com in comments on the web site. The spread was
purchased for $1.85 on 50,000 contracts, potentially positioning for any
further downside pressure as the stock broke the 200-day moving average,
approaches the 50-day and has a large gap below to the 100-day average, he
said. Its shares fell 4.14 percent to $23.39.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1417 ET 17June2009-Eddie Bauer files for Ch 11, Rainier to buy
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Eddie Bauer Holdings Inc EBHI.O on Wednesday filed for Chapter 11
bankruptcy protection, the second bankruptcy for the company.

According to a court filing, the outdoor apparel retailer is planning to
sell nearly all its assets to Rainier Holdings LLC. Its board has also received
a limited guarantee from two affiliates of CCMP Capital Advisors LLC on some of
the buyer's payment obligations.

The company blamed its debt load, citing concern it might not be able to
comply with conditions attached to its $225 million senior term loan facility.

For details, see [ID:nN17347497]

Shares plummeted 29 percent to 16 cents.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1351 ET 17June2009-S&P adds Badger Meter to S&P SmallCap 600
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Badger Meter Inc (BMI.N) shares jumped on Wednesday after Standard & Poor's
said that the flow-measurement product maker will replace WMS Industries Inc
(WMS.N) in the S&P SmallCap 600 index after the close of trading on June 23.

Slot machine maker WMS Industries will be added to the S&P MidCap 400
index, replacing Colonial BancGroup Inc (CNB.N) on the same date.

S&P also announced commercial property and casualty insurer Employers
Holdings Inc (EIG.N) will replace telecom test systems supplier Catapult
Communications Corp (CATT.O), which is being by Ixia (XXIA.O), after the close
on June 23.

Badger Meter shares jumped 11.7 percent to $43.98, WMS Industries gained
6.5 percent to $30.37 and Employers Holdings climbed 8 percent to $13.34.
Colonial BancGroup shares slid 5.9 percent to 96 cents and Catapult
Communications was unchanged at $9.22.

Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1311 ET 17June2009-Abercrombie to close Ruehl by end of fiscal year
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Abercrombie & Fitch Co (ANF.N) on Wednesday said it would close its Ruehl
unit, citing unsustainable losses. The chain posted a drop of 34 percent in its
first-quarter same-store sales.

Because of the closure, Abercrombie expects to take additional charges of
$65 million, which it will recognize largely throughout the rest of the fiscal
year.

For details, see [ID:nN17335314]

Abercrombie's shares rose 3.4 percent to $26.67.

Reuters Messaging: rachel.chang.reuters.com@reuters.net
1259 ET 17June2009 Protective puts look attractive in some coal names,
Susquehanna
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Although most names throughout the coal sector have performed well during
the three-month market rally, recent trading activity in the Market Vectors
Coal ETF (KOL.P), the coal heavy SPDR Metals & Mining ETF (XME.P) and in coal
producer Consol Energy (CNX.N) seems to suggest investors may be positioning
for protection, said Susquehanna Financial Group in a note. With the cloudy
picture surrounding coal supply and demand as well as prices, several names of
the KOL ETF are possible put protection candidates, it said. In light of strong
gains across the sector, volatility has dropped while skew levels are generally
mixed. Given the low volatility levels, Susquehanna said investors may find
puts in Foundation Coal and Walter Energy attractive due to their sector
outperformance year-to-date. In other outperformers with relatively high skew
levels, long put spreads could be a less costly means of protection. Candidates
for put spreads could include Massey Energy and Peabody Energy, SIG said..

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