STOCKS NEWS US-Talbots gets bullish option play

Stocks on the move Real-time Equity news U.S. stock market report 1350 EST 05Nov2009-Talbots draws longer-term call option play ------------------------------------------------------------------------------ Shares of apparel retailer Talbots Inc rose 10 cents to $8.59 in afternoon trade on Thursday. In the options market, interest picked up in the longer-dated $7.50 call strike that expires in January 2010. Reuters data show the $7.50 line traded 2,600 times against open interest of 154 contracts. WhatsTrading.com option strategist Frederic Ruffy said that 95 percent of the volume traded ask-side. ISEE data on the International Securities Exchange confirms that customers bought fresh positions. There was no news on the stock.

Earnings are expected on Dec. 8. "Shares are down 28.8 percent from an Oct. 14 high of $12 and today's call buying might be hedging or in anticipation of a short-term bounce," Ruffy said. The stock's implied volatility, a barometer of anxiety conveyed by option prices, remains elevated. Reuters Messaging: [e-mail] 1217 EST 05Nov2009-JPMorgan says has room for acquisitions ------------------------------------------------------------------------------ Charlie Scharf, the chief executive of retail financial services at JPMorgan Chase & Co, on Thursday said the bank had room to keep growing through acquisitions. "If there is a specific area that we know next year, and the year after, and the year after that, we want to build 20 branches a year, if we can go and buy a bank with 25, 30 branches at the right price, with the right protection we would consider doing that," Scharf said. For details, see Shares of JPMorgan, a Dow component, rose 1.8 percent to $42.96. Reuters Messaging: [e-mail] 1155 ET 05Nov2009 Option player take cautious view in SunTrust ------------------------------------------------------------------------------ Option traders appear to be taking a defensive stance in SunTrust Banks Inc . Its shares slipped 3 cents to $19.41 near midday. The company is presenting at the BancAnalysts Association of Boston Conference. In the options market, about 18,000 put options crossed the tape vs. 5,440 calls or more than 3 puts traded for every call, according to Trade Alert. WhatsTrading.com option strategist Frederic Ruffy noticed several plays were initiated on the Philadelphia Stock Exchange. The top trade was 5,000 January 2011 $12.50 puts bought at $1.75 apiece. Another was the April $15-$25 so-called risk reversal which fetched 15 cents and traded 1,000 times in what looked like calls were sold to fund the purchase of puts. In addition, the December $17-$18 put spread traded at 31 cents in what appeared to be a bearish play on the regional bank. Reuters Messaging: [e-mail] 1139 EST 05Nov2009-SunPower advances on Deutsche Bank upgrade ------------------------------------------------------------------------------ Shares of SunPower Corp rallied on Thursday, after Deutsche Bank upgraded the stock to "buy" from "hold." The firm said that given estimated industry growth and the company's market position, it wasn't fully valued. For details, see The stock gained 5.3 percent to $26.66. Reuters Messaging: [e-mail] 1114 ET 05Nov2009-Traders load up on ITT Education calls ------------------------------------------------------------------------------ Investors are picking up bullish call options in ITT Services Inc, hoping to catch extended near-term share gains. The stock rose 1.8 percent to $93.84 near midday. Option volume consisted of 6,791 call contracts, or more than double the average daily turnover, Trade Alert data show. OptionMonster co-founder Pete Najarian said the firm's computer model showed that buyers populated the November $90 and $95 calls. But the November $105 call strike was the most popular and attracted 3,243 contracts against open interest of 1,455 lots, Reuters data showed. It traded at 40-cent to 45-cent premiums, although the bulk of the buyers paid in the 35-cent range, Najarian said on the Web site. There was apparently no news on ITT to explain the bullish action. But it looks like investors expect some sort of catalyst to lift shares over the next two weeks, said WhatsTrading.com option strategist Frederic Ruffy. Reuters Messaging: [e-mail] 1104 EST 05Nov2009-Hyatt shares rally in NYSE trading debut ------------------------------------------------------------------------------ Shares of Hyatt Hotels Corp advanced in their trading debut on Thursday, spurred by the hotel company's strong balance sheet and low valuation. On Wednesday, the company's initial public offering priced at $25, within the expected range. For details, see The stock climbed 8.2 percent to $27.06. Reuters Messaging: [e-mail] 1034 EST 05Nov2009-U.S. stocks climb on data, Cisco earnings ------------------------------------------------------------------------------ U.S. stocks advanced on Thursday, lifted after the release of data showing productivity grew at the fastest pace in six years, and that jobless claims fell to a 10-month low. Sentiment was also lifted a day after Cisco Systems reported strong quarterly results. For details, see The Dow Jones industrial average rose 1.5 percent to 9,946.33 while the S&P 500 gained 1.3 percent to 1,060.04 and the Nasdaq advanced 1.9 percent to 2,049.49. Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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