STOCKS NEWS US-RIM premium buyers suggest post earnings move

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1736 ET 17June2009 RIM option premium buyers suggest post earnings move
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A number of option players in Research In Motion (RIM.TO) (RIMM.O) appear
to be betting on a big earnings-related move in the BlackBerry maker after it
reports quarterly earnings late on Thursday. "There is a tremendous amount of
premium buyers both on the call and put side, suggesting that RIM will move
substantially up or down on the day after earnings are released," said William
Lefkowitz, option strategist at vFinance Investments. Most notable have been
the soon-to-expire June options which go off the board on Friday. On the put
side, the strikes from $75 to $60 are active. Near-term RIM calls were busy
from the $80 strike up the $100 strike, he said. RIM shares fell 3.84 percent
to $77.21 on the Nasdaq. OptionMonster co-founder Jon Najarian said in comments
on his Web site that RIM share price action was noteworthy as the interest in
the June $75 puts are threatening to overtake the $80 calls.

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

1658 ET 17June2009 Allstate options warm up to likely gains
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Shares of Allstate Corp All.N, the largest U.S. publicly traded car and
home insurer, fell 1.65 percent to $23.26. But its option activity suggests a
move back up to the upside in the next few weeks. That includes large volume in
the July $29 calls and apparent buyers in the July $25, $26 and $27.50 calls as
well as the October $25 and $29s, said WhatsTrading.com option strategist
Frederic Ruffy. Interactive Brokers Group market analyst Andrew Wilkinson said
early afternoon action came in the form of hefty call activity centered on the
July $29 call strike. With shares around $23.60 at midday, "we're seeing around
16,000 calls at play for a 20 cent premium," he said. This strike is already
heavily favored by investors and has an open interest reading in excess of
29,000 contracts, he said in a note. Given the fact that the volume is trading
in sizable round-lot chunks at mid-market prices, "we sense that this is the
closing half of a bull play with the option trader possibly taking down some
losses," he said.

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

1542 ET 17June2009 Nordstrom gets large bearish put spread
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Upscale department store chain Nordstrom Inc (JWN.N) was accessorized with
a large put spread this morning when shares were on the decline, said Andrew
Wilkinson, market analyst at Interactive Brokers Group in a note. Norstrom
shares have since recovered and were up 9 cents to $19.08 near the close. Its
option volume increased following an investor's bearish play in the October
contract. Wilkinson said the transaction involved the purchase of 20,000
October $19 strike price for $3.40 apiece spread against the sale of 20,000
puts at the lower October $14 strike for a premium of $1.20 each. The net cost
of the spread was $2.20 and yields maximum potential profits to the investor of
$2.80 if shares sink down to $14 by expiration, he added. Shares must fall
about 13 percent from a reference share price of $19.30 before the trader
breaks even at $16.80.

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

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