STOCKS NEWS US-Fairchild Semi defensive put options in play

Real-time equity news U.S. stock market report 1126 ET 12Nov2010 Fairchild Semiconductor puts draw interest ------------------------------------------------------------------------------ Investors have been looking at Fairchild Semiconductor International's put options following an upgrade from Citigroup, traders said. The shares rose 1.57 percent to $12.29 in morning trade after Citigroup raised its recommendation on the stock to "buy" from "hold," said optionMonster analyst David Russell. Some 4,300 December $11 strike puts and 1,200 December $12 puts were purchased, said Patrick Mortimer, director of option trading at Pipeline Trading Systems. Almost all of this trading is opening positions and has pushed the stock's volume to seven times its daily contract average earlier in the session, he added. Also of note is that Friday's volume accounts for nearly 50 percent of the company's total option open interest. With Fairchild setting a new year high of $12.80 on Monday, the activity looks like an investor is looking for the shares to pull back over the next five weeks or protecting a long equity position after the recent rally, he said. Reuters Messaging: 1011 EST 12Nov2010-Intel raises dividend by 15 pct ------------------------------------------------------------------------------ Intel Corp's board approved a 15 percent increase in its quarterly dividend to 18 cents a share, the company said on Friday. For details, see Shares of Intel, a Dow component, rose 2.3 percent to $21.70. Reuters Messaging: 1007 EST 12Nov2010-Consumer sentiment rises in early November ------------------------------------------------------------------------------ U.S. consumer sentiment rose more than expected in early November, helped by a slightly better economic outlook and early holiday sales, a survey released on Friday showed. The Thomson Reuters/University of Michigan's preliminary November reading on the overall index on consumer sentiment came in at 69.3, up from 67.7 in October and slightly higher than the median forecast of 69.0 among economists polled by Reuters. For details, see Reuters Messaging: 0947 EST 12Nov2010-Markets open lower on energy, materials ------------------------------------------------------------------------------ U.S. stocks opened lower on Friday as expectations of a China interest rate increase hit commodity prices and dragged energy and materials stocks lower. The Dow Jones industrial average dropped 62.59 points, or 0.55 percent, to 11,220.51. The Standard & Poor's 500 Index lost 7.78 points, or 0.64 percent, to 1,205.38. The Nasdaq Composite Index fell 13.99 points, or 0.55 percent, to 2,541.53. Reuters Messaging: 0901 ET 12Nov2010 Option traders more defensive on tech stocks-WJB analyst ------------------------------------------------------------------------------ Options traders appear to be adding to risk valuations at this time, especially on technology shares, and managers are becoming increasingly defensive towards the end of the year, said Scott Fullman, director of derivative investment strategy at WJB Capital Group. "While we continue to believe that the market will rise, led by advances in the credit markets, short-term volatility and news can result in some downward pressure in the market," Fullman said. "Conversations with customers and traders indicate that concerns of a short-term decline are increasing." Taking an early look at November options expiration next week, call contracts that are currently worthless account for 30.9 percent versus 44.5 percent for put contracts as of Thursday's close. Trading in front-month November options accounted for 41 percent of total options volume on Thursday, he said. Reuters Messaging: Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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