STOCKS NEWS US-Traders favor RIM calls in early trade

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0947 ET 18June2009 Trades circle RIM calls in early trade
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Option order flow in Research In Motion (RIMM.O) (RIM.TO) was tilted on the
call side as about 26,000 contracts traded, more than double the put volume in
the first 20 minutes of trade, according to Trade Alert. The BlackBerry maker
is due to report quarterly results after the close. Wednesday's RIM option flow
was triple normal levels and dominated by premium buyers focused on
out-of-the-money June $80 calls and $75 puts, as shares hovered near the $78
range most of the day, said Trade Alert president Henry Schwartz. More than
25,000 of each contract traded, with buyers hoping for a significant move on
today's post-close earnings release, he said. The implied gap-move based on
June option implied volatility is about $6 and both options finished Wednesday
near a $3 premium, with nearly 5,000 contracts of open interest growth in each
contract. But he said total RIM call open interet grew 45,000 contracts, double
the put total. April earnings cycle resulted in a $13 spike in shares, Schwartz
said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
0930 ET 18June2009-Markets open flat after data, ahead of Geithner
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Major U.S. indexes opened flat on Thursday following a weekly government
report showing a steep drop in the number of people staying on jobless aid.

Besides focusing on the data, investors will also look for what reception
Treasury Secretary Timothy Geithner will get from lawmakers when he testifies
before two Congressional panels on the Obama administration's proposed
financial regulatory reform.

The Dow Jones industrial average .DJI rose 0.1 percent to 8,500.75 while
the S&P 500 .SPX gained 0.1 percent to 911.23 and the Nasdaq .IXIC was flat
at 1,807.45.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0914 ET 18June2009-HLTH to merge into its WebMD unit
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HLTH Corp HLTH.O on Thursday said it would merge into its subsidiary
WebMD Health Corp (WBMD.O) in an all-stock deal.

As part of the deal, WebMD Class B shares will be retired and each
outstanding share of HLTH common stock will convert into 0.4444 shares of WebMD
Class A common stock.

HLTH currently owns 48.1 million shares of WebMD Class B common stock,
representing about 80 percent of equity of WebMD, which operates the popular
healthcare website of the same name.

"This transaction will eliminate the inefficiencies associated with having
two separate public companies and HLTH stockholders will receive a direct
ownership in WebMD through a tax-free transaction," the companies said.

For details, see [ID:nBNG420714]

WebMD shares closed Wednesday at $28.21 while HLTH closed at $11.76.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0857 ET 18June2009-Goldman upgrades automobile sector
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Goldman Sachs on Thursday upgraded the U.S. automobile sector to
"attractive," citing a recent pullback in the group's shares.

"We think the rising tide of auto sales is likely to drive shares much
higher supported by lower auto interest rates at captive financial companies,
improving consumer confidence, and a scrappage plan which is likely to come
into effect in September," the firm wrote. "We think we are still in the middle
phase of a cyclical rally and would use any weakness to build positions."

As part of its call, Goldman upgraded ArvinMeritor (ARM.N) to "buy" from
"neutral," saying the stock was "poised to benefit from a cyclical rebound in
class-8 production." The firm sees upside potential of 43 percent on the
stock.

Shares of Arvin surged 15 percent to $4.01 in premarket trading.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0851 ET 18June2009-BofA paying bonuses to lure talent: NY Post
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Bank of America Corp (BAC.N) has been paying millions in bonuses in order
to lure talent and retain investment bankers the company views as vital, the
New York Post reported, citing sources.

Among those who are said to have received payouts are two former Merrill
Lynch bankers, Fares Noujaim, recently appointed BofA's vice chairman of
investment banking, and Harry McMahon, the paper said.

Both were offered guarantees not to leave, the paper said.

For details, see [ID:nLI729151]

Shares of the Dow component rose 7 cents to $12.37 in premarket trading.

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