STOCKS NEWS US-Traders load up on Dendreon put options

Stocks on the move [HOT-RTRS] Real-Time Equity news [U E]

U.S. stock market report [.N] 1748 ET-27Feb2009-Dendreon put options in hot demand -analyst ------------------------------------------------------------------------------

Dendreon Corp (DNDN.O) shares fell 6.73 percent to $3.05, a six-year low as traders loaded up on the equity's put options. "This highly volatile stock has gone on a wild ride over the last few years, including a massive short squeeze back in April 2007," said Chris McKhann, analyst at optionmonster in comments on the website. He said the active trade was in the April $2.50 puts, where more than 11,500 contracts traded. There have been a couple of large broken trades, but the biggest blocks included 5,000 and 2,000 contracts, both apparently bought for $1.35 a contract, according to optionmonster's computer model. "This is an odd strategy, even with the stock dropping to such low levels. The shares will need to fall another 63 percent by expiration to make these trades profitable," McKhann said. Dendreon's option implied volatility rose to a new high of 267 percent compared to around 120 percent back in early January.

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

1723 ET-27Feb2009 Investors eye Terex call options, shares up ------------------------------------------------------------------------------

Shares of Terex Corp (TEX.N), the world's third-largest maker of construction and mining equipment, rose 13.05 percent to $8.92. Since peaking last May, its shares have lost 88 percent of their value as the worldwide recession has eaten into orders. Nearly 7,000 calls traded vs. 1,243 puts in Terex, according to Trade Alert. In the April $12.50 strike calls, 3,900 lots traded, which appears to be driven by call buyers as about two-thirds traded ask-side, said Frederic Ruffy, options strategist at WhatsTrading.com. Recent trades also include the April $10/$12.50 ratio call spread, bought 500 times for 30 cents. At the Reuters Manufacturing Summit this week, its top executive said the company's construction and road building units were under review for possible divestiture as Terex focuses on generating cash and positioning itself for life after the current downturn. On Friday, Standard & Poor's Rating Service took Terex's ratings off credit watch after the company successfully amended its credit agreement, giving it more flexibility under the fixed charge ratio covenant.

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

1628 ET-27Feb2009 Mosaic shares, options move on takeover talk ------------------------------------------------------------------------------

Shares of North American fertilizer company Mosaic Co (MOS.N) rose as much as 10 percent and its option call volume surge on takeover speculation. Its shares jumped 8.55 percent to $43.05, after hitting a session high of $43.72. The equity's call volume swelled to about 64,000 contracts, topping its average daily turnover of 15,000 lots, according to Trade Alert. "There's a rumor that privately held Cargill may purchase the 35 percent of Mosaic they do not own and thus, this significant rally today," said optionmonster co-founder Jon Najarian in comments on his web site. Cargill owns a major stake in Mosaic. Both companies were not immediately available for comment. "Mosaic is being isolated today as a takeover candidate. The majority of the fertilizer companies have been hurt substantially this year and are currently being considered good value plays," said William Lefkowitz, options strategist at vFinance Investments,

Reuters Messaging: doris.frankel.reuters.com@reuters.net 1155 ET 27Feb2009-LKQ advances after Raymond James upgrade ------------------------------------------------------------------------------

Shares of LKQ Corp (LKQX.O) advanced on Friday, after the company was upgraded to outperform at Raymond James, which said the automotive parts recycler could "conceivably meet or beat guidance." It also said that the bulk of issues faced by the company were over.

LKQ on Thursday reported fourth-quarter results that missed expectations because of "massive steel price deflation," Raymond James wrote, adding that this had been factored into the results and now "represents the eliminating of a major overhang." [ID:nBNG475130]

The stock rose 11.6 percent to $13.38.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1138 ET 27Feb2009-Amicus Therapeutics drops after trial hold ------------------------------------------------------------------------------

Amicus Therapeutics (FOLD.O) tumbled on Friday after the company said a clinical hold had been placed on a mid-stage trial of its experimental treatment for a rare muscle disorder after two patients experienced serious adverse events.

Shares plunged over 30 percent to $6.61.

The decline comes a day after healthcare and drug companies fell on worries that President Barack Obama's budget proposal will curtail profits at the companies as he attempts to rein in healthcare costs.

The Amex Biotechnology index .BTK fell 2.4 percent on Friday. (Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net) 1127 ET 27Feb2009-FDIC approves one-time bank fee ------------------------------------------------------------------------------

The U.S. Federal Deposit Insurance Corp on Friday approved a one-time special fee of 20 basis points in the third quarter for FDIC-insured banks.

The FDIC also OKed an increased regular assessment schedule that is slated to start in the second quarter, as well as the ability to impose quarterly fees of 10 basis points in emergency situations. [ID:nWEN5289]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1111 ET 27Feb2009-Midwest business less weak than expected in Feb ------------------------------------------------------------------------------

Business activity in the U.S. Midwest contracted in February, but at a less severe rate than analysts were expecting as production inched up, according to a report from the Institute for Supply Management-Chicago.

The barometer rose to 34.2 from 33.3 in January. The analyst expectation was for a reading at 33.

While the index rose from the prior month, any reading below 50 represents contraction in the regional economy. [ID:nNAT004778]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1107 ET 27Feb2009 BofA March puts in focus as stock drops ------------------------------------------------------------------------------

Shares of Bank of America (BAC.N) sank 13.53 percent to $4.60 and hit a session low of $4.25 earlier in the session on fears it might face a similar fate to Citigroup, said Frederic Ruffy, options strategist at WhatsTrading.com. The financial sector was hit as a move by the U.S. government to take a large common equity stake in lender Citigroup (C.N) sowed uncertainty over the fate of major banks. Bank of America's options trading is brisk, with about 99,000 puts and 82,000 calls crossing the tape in the first 90 minutes of trade. Sentiment is leaning toward a bearish bias amid increasing buying interest in March puts at the $4 and $3 strikes, Ruffy said. More than 60,000 traded in total and implied volatility in those two strikes moved back to 200 percent in morning trade.

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