Merger Rumors & Chatter Drives Options (BG, MON, NWS, MWW, NUE, SCHN, CL, AMTD, ETFC)

247admin — Wed, 18 Nov 2009 21:21:41 +0000

Originally submitted at 2:00 PM EST…. Despite the markets trading a bit lower today there was a lot of call activity today based on takeover chatter in various sectors, as the bullish move in the markets coupled with a budding M&A market have speculators active. Early morning action was in Bunge (NYSE: BG), with Monsanto (NYSE: MON) rumored to be offering a $75 price tag, and 24,000 calls traded, a lot of new opening buyers with 50% of the action offer side, with the large players buying the out of the money January $70 calls in size.

Then a rumor that News Corp (NYSE: NWS) is looking to takeout Monster Worldwide (NYSE: MWW) at $23.50 per share hit, and today 43,800 calls have traded, 52% offer side buys with 100+ lots of November and December $15 calls being bought, 22X average call volume.

A rumor that Nucor Corporation (NYSE: NUE) has a $60 offer for Schnitzer Steel (NASDAQ: SCHN) never really gained any traction. Riverbed Technology (NASDAQ: RVBD) was also back in the M&A chatter as 9,700 calls traded, half the action offer side, with buyers in December $22.50 calls.

The most explosive action came late in the day as Colgate (NYSE: CL) shares spiked 4% higher and IV jumped 56% as a UK newspaper mentioned that a merger with Reckitt may be close. 37,500 calls traded with 57% offer side, also seeing some sizable chunks of November $85/$90 calls and December $85/$90 calls being bought in strength.

Later in the day came wod that Ameritrade (NASDAQ: AMTD) might be looking to buy E*TRADE Financial (NASDAQ: ETFC) also began to hit trading floors and call action jumped…. at least for a sub-$2.00 stock.

JOE KUNKLE, OptionsHawk.com

NOVEMBER 17, 2009

Steel stocks lag on commodities weakness, construction market worries (SCHN, X, CMC, RS, NUE, AKS)

247admin — Tue, 30 Jun 2009 16:09:59 +0000

Steel stocks are among the laggards Tuesday after disappointing results from Schnitzer Steel Industries Inc. (Nasdaq: SCHN) and a lackluster consumer confidence report that helped spur lower commodity prices.

Schnitzer is weighing most heavily on the group, down more than 10 percent as of noon Tuesday, on more than twice its normal volume. The company missed earnings expectations by 21 cents a share, and revenue fell 58 percent from the same period a year earlier. The company cited weak demand in both the non-residential and infrastructure construction markets in its steel manufacturing business. The company expects the construction market weakness to continue through the rest of the year.

Among other steel names, United States Steel Corp. (NYSE: X), Commercial Metals Co. (NYSE: CMC) and Reliance Steel & Aluminum Co. (NYSE: RS) all are down more than 3 percent on moderate volume. Nucor Corp. (NYSE: NUE) shares are down more than 2 percent. AK Steel Holding Corp. (NYSE: AKS) is down more than 1 percent. — Mike Tarsala

Volume Spike Investor » NUE

Merger Rumors & Chatter Drives Options (BG, MON, NWS, MWW, NUE, SCHN, CL, AMTD, ETFC)

Steel stocks lag on commodities weakness, construction market worries (SCHN, X, CMC, RS, NUE, AKS)