Thursday, June 30, 2011

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)


The most volatile stocks for today sorted by the greatest option volume on top.




http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Options Flow Recap June 30th

Macro

EEM iShares MSCI Emerging Markets Indx (ETF) - Buyer 15,000 July 42/46 put fly for 14

FXE CurrencyShares Euro Trust - seller 5,000 July 140 puts vs 144.38 at .36

IV Changes
Largest IV Increases: LZ, ED, EBIX, TLVT, DNDN, INCY, ZRAN, WCRX, NHP, CORN
Largest IV Decreases: VRGY, VVUS, VIX, EBAY, CP, SPRD, LEG, MRO, HRBN, WCG


Options 101: Synthetic Stock Positions

An important characteristic of stock options is that they can be combined with other options or underlying contracts to create positions with characteristics which are almost identical to some other contract or combination of contracts.

A synthetic underlying position is an equivalent position that is constructed without actually buying or selling the underlying stock. Instead, call and put options are purchased and sold simultaneously. It's important to note that interest rates, as well as the possibility of early exercise, can cause the delta of a synthetic underlying position to be slightly more or less than 100.

10 Questions for Nassim Taleb (Video)

What Does It Take to Be a Successful Trader?


Hedge Fund Performance Persistence: A New Approach

Good article from FAJ on hedge fund performance persistence.

Abstract:

Recent literature has found some evidence of performance persistence in hedge funds. This study
investigated whether this persistence varies with fund characteristics, such as size and age. Previous
research has found that funds face capacity constraints, that investment flows chase past
performance, and that as funds age, they become more passively managed, which reduces the
likelihood of performance persistence as funds grow older and larger. Consistent with this model,
this study found that performance persistence is strongest among small, young funds. A portfolio
of these funds with prior good performance outperformed a portfolio of large, mature funds with
prior poor performance by 9.6 percent per year.

Morning Note

Equity futures are trading above fair value as the Greek Parliament today votes to implement the austerity measures it approved in principle yesterday. In economic data, initial jobless and continuing claims are due at 08:30 ET.

S&P would cut US credit rating to lowest level if it defaults. In a recent interview with Bloomberg, John Chambers, the chairman of the company's sovereign rating committee, said that S&P would lower its sovereign credit rating on the US from AAA to D if the government fails to raise the debt ceiling and is forced to default.
However, Chambers added that S&P continues to believe that the debt ceiling will be raised and the US will avoid a default, adding that “Otherwise we wouldn’t have a AAA rating on the U.S. government. It’s evolving as we expected.”

Wednesday, June 29, 2011

How a Full-Time Trader Uses Fibonacci Levels

Options Flow Recap June 29th


Macro / Thematic

SPY  SPDR S&P 500 ETF – The August 120 / 124 / 128 put fly traded for $0.38, 30,000 x 60,000 x 30,000. This trade makes money with SPY trading on Aug expiration between 127.62 and 120.38, max profit of 3.62 (1 to 9.52 risk reward ratio) with SPY closing on Aug expiration at 124.00

EEM iShares MSCI Emerging Markets Indx (ETF) – The July 41 / 43 / 45 put fly traded for $0.10, 5000 x 10000 x 5000. This spreads offers a 19x1 max payout w/ the max profit being realized with EEM trading at $43 on July expiration.

SMH Semiconductor HOLDRs (ETF)  - 7500 of the August 24 calls were sold at $0.78

Song of the Day: AWOLNATION - Sail (LED Remix)

dope remix of sail drop'd today. we featured the original back in February here.  Enjoy 

Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)


The most volatile stocks for today sorted by the greatest option volume on top.

http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Morning Note

June 29, 2011

Equity futures are trading above fair value following gains in Europe on optimism the Greek parliament will today approve the austerity program. Indices and futures rose further after an opposition party MP said he will back the austerity package, causing a surge in the Euro. Passage of the austerity plan and an implementation law on Wednesday and Thursday are conditions for Greece to receive the next installment of the €110B bailout from the European Union and International Monetary Fund. Prime Minister George Papandreou has a five-seat majority, but some members of his party have threatened to vote against it. It's reported that the vote will probably take place between now and 15:00 BST (now and 10:00 ET)

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)


The most volatile stocks for today sorted by the greatest option volume on top.



http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Tuesday, June 28, 2011

Options Flow Recap June 28th


Macro / Thematic

IWM  iShares Russell 2000 Index – The July 80 / 78 1x2 put spread trade at $0.11. The investor bought 10,000 of the July 80 put and sold 20,000 of the July 78 puts

SMH Semiconductor HOLDRs (ETF) – 5000 of the August 35 / 38 call spread was bought for $0.39.

EWZ iShares MSCI Brazil Index - seller 7764 July 71 puts at 1.60

The Momentum Indicator

Momentum measures the amount that a price has changed over a given time span. The ratio is calculated by the following formula:
Momentum = (C/Cn)*100

where C is the most recent closing price, and Cn is the closing price n periods ago.

Trend followers buy when the momentum indicator bottoms and turns up, crosses above some absolute threshold, crosses above some moving average of itself, or shows some positive divergence relative to price. Trend followers would sell when the opposite conditions apply.

Classic Indicators by Linda Raschke


The Black-Scholes Formula (video)


Morning Note

June 28, 2011

Equity futures are trading below fair value as European markets pare initial gains with the focus remaining on developments in Greece as trade unions hold the first day of a 2-day general strike. With little scheduled corporate news flow, the focus will be on Consumer Confidence data at 10:00 ET.

Monday, June 27, 2011

Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)


The most volatile stocks for today sorted by the greatest option volume on top.



http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

'Sesame Street' Tells You How to Get to Sunnier Days Financially | PBS NewsHour | June 3, 2011 | PBS

Interesting to see that those that could not only identify the reward but ALSO had the discipline to stick with the decision to delay gratification were most successful. How many times have we said to ourselves that we would make a sacrifice, only to give in when that sacrifice stares us in the face. Favorite quote: "Savings is not a natural concept"

'Sesame Street' Tells You How to Get to Sunnier Days Financially | PBS NewsHour | June 3, 2011 | PBS

Options 101: The Risk Reversal

A risk reversal consists of buying an out of the money call and being short an out of the money put, both with the same expiration month.

Risk reversals are used when the investor has a market opinion. For example, if the trader is bullish, another option besides going long the stock, would be to buy an out of the money call option, and simultaneously sell an out of the money put option. The money he receives from the sale of the put option would finance all or part of the purchase of the call options. Then as the stock goes up in price, the call option will increase in value, and the put option will decrease in value.

Options Flow Recap June 27th



Macro / Thematic

SPY  SPDR S&P 500 ETF – 10,000 of the July 30 calls were bought for $0.43.  Also, a buyer 17,800 July 127 wkly calls for 1.40 & buyer 7,100 June 125 wkly puts for .49

EEM  iShares MSCI Emerging Markets Indx (ETF) – 8500 of the July 44 puts were bought for $0.40.

XLE Energy Select Sector SPDR (ETF) – 41,000 of the July 70 puts were sold at $1.03.

VIX saw 132% the normal volume with 446K calls and 38K puts traded.  10,000 of the July 30 calls were sold at $0.50. Nothing else really stands out to me

Trade of the Day: Eastman Kodak August $2.5/$3 bull put spread

The Trade
A trader executed the EK August $2.5/$3 bull put spread for a $0.14 credit, 4,090x.


Song of the Day: Eminem - Space Bound

The Process of Trading One Trade at a Time: Step 1 Self Control

As a follow up to my post The Process of Trading One Trade at a Time here is the first step: Self Control.


Step 1: Self Control- Staying Calm In Any High Pressure Situation


You are the only thing in trading you can control. Therefore, in order to control your performance you must control yourself.  "Am I in control of myself?" ought to be the first question you ask yourself before each trade.  In order to answer that question you must be objective and give yourself feedback. Are you in the zone? Relaxed? Focused? Following your trading plan? Confident in your trading? Disciplined?  Asking yourself these questions, thoroughly checking in on yourself, and giving yourself objective grades on how you are performing gives you a higher level of awareness that you need in order to properly analyze your trading.  Master traders recognize when adjustments are needed and what adjustments to make. 

Morning Note

June 27, 2011


Equity futures are trading above fair value to start the week. In Europe, Greece will remain the main focus of attention this week as the Greek Parliament begins to debate the medium-term fiscal plan and the implementation laws on Monday. Voting on the legislation will occur on Wednesday for the Medium-Term Fiscal Strategy and Thursday for the implementation law.

Friday, June 24, 2011

Song of the Day: Pantyraid - Get The Money

Trade of the Day: Williams Co. August $30/$27 bull risk reversal

The Trade
A trader bought 7,500 August WMB August $30/$27 bull risk reversals at $0.65.


Risk Management, the Great Equalizer

This article originally appeared at The Option Pit written by Morgan from The Trading Pub.  This is an excellent article for beginning traders.  Professional traders will be well aware of the concepts.  I've highlighted parts of the article to emphasize key points.  As I've said many times before and I'll tell you again; If you can't find a trade where the reward is 2x the risk... pass on the trade.  

Morning Note

June 24, 2011


Equity futures are trading mixed to fair value, pressured by unconfirmed rumors in Europe that Italian banks failed the stress test. Earlier today, Greek Finance Minister Evangelos Venizelos reached a deal with the EU and the IMF on additional tax rises and spending cuts. European Union leaders have formally appointed Mario Draghi to be the next president of the European Central Bank in October.

Yesterday after the close, Oracle (ORCL) and Micron (MU) traded lower after reporting earnings, which is helping to cause the relative underperformance in Nasdaq futures.

Thursday, June 23, 2011

Options Flow Recap June 23nd


Thematic / Macro

XLB Materials SPDR (ETF) – 70,000 of the July 37 / 39 risk reversal was bought for $0.69.

SPY SPDR S&P 500 ETF – 20,000 of the July 124 puts were bought for $1.59.

XLF Financial Select Sector SPDR (ETF) September $15/$16/$17 call butterfly, 25,000x50,000 at $0.21

Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)


The most volatile stocks for today sorted by the greatest option volume on top.



http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Flight Facilities - Crave You (Adventure Club Dubstep Remix)

Trade of the Day: XLF September $15/$16/$17 call butterfly for $0.21

The Trade
A trader set up the XLF September $15/$16/$17 call butterfly, 25,000x50,000 at $0.21.


Morning Note

June 23, 2011


Equity futures are trading below fair value in a continuation of yesterday's weak close. The performance follows yesterday's FOMC policy decision and Chairman Bernanke's press conference. The Federal Reserve cut its forecasts for U.S. economic growth, but offered no hint of further monetary support, saying the recovery should gradually pick up heading into 2012. Headlining economic data today is weekly jobless claims data at 08:30 ET.

Wednesday, June 22, 2011

You gotta dream clip from The Pursuit of Happyness

You gotta dream... you gotta protect it.  You want something... go get it... period.

Song of the Day: DRAKE – “TRUST ISSUES”

Do Right And Kill Everything aka DRAKE is back with a new single, "Trust Issues",  to be released in July.  Enjoy!

Options Flow Recap June 22nd


Macro

EEM iShares MSCI Emerging Markets IndxBuyer 5K Sep 39/44 put spreads for 1.00 vs 45.92, 20 delta

VIX saw 66% the normal volume with 318K calls and 127K puts traded.  Some larger trades in the pit:
·         Seller 20,000 Aug 25 calls at 1.525

Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)


The most volatile stocks for today sorted by the greatest option volume on top.



http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

The ITC Would Review an Eastman Kodak (NYSE:EK) Patent Claim

Morning Note

June 22, 2011


Equity futures are trading below value ahead of today's FOMC's policy statement due at 12:30 ET, followed by Chairman Ben Bernanke's press conference at 14:15 ET. Chairman Bernanke is likely to reiterate his forecast for a rebound in H2 of the year, though may temper that forecast based on the soft economic data of late. Greek PM George Papandreou's new cabinet was approved in parliament by 155 votes to 143, with two abstentions. The Parliament will now be asked to approve €28B of cuts, tax rises, fiscal reforms and privatisation plans.

Tuesday, June 21, 2011

How To Use the Most Volatile Stocks List

I had a trader ask me how to use the "Most Volatile Stocks List" last week so I wanted to give an example of how I use it.  This might not work for everyone, risk management is key, experience is key, and I'm not giving investment advise.  This is purely educational.

The post: Volatility = Opportunity is posted everyday and screens for names that trade over 1MM shares of stock, over 5k options, and has an implied volatility (IV) over .6.  We post the top 20 because... well that's what we use.

Trade of the Day: Wyndman Worldwide short August $32 straddle

The Trade
A trader sold 4,000 August $32 straddles at $3.45 which was tied to 100,000 shares of stock.


Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)

The most volatile stocks for today sorted by the greatest option volume on top.



http://seaofopportunity.blogspot.com/*Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Options Flow Recap June 21th


Macro / Thematic

SPY SPDR S&P 500 ETF  – 25,000 of the  July 129 / 125 put spreads were bought for $1.08.

GDX Market Vectors Etf Trust – 2250 of the August 59 calls were sold at $0.77. The calls were sold to open.

Song of the Day: A.Skillz - California Soul (A.Skillz & Diplo Remixes)

Let the summer begin! 

Morning Note

June 21, 2011


Equity futures are trading above fair value ahead of today's two-day FOMC meeting. The Greek government is due to face a vote of confidence today, a first step towards gaining a €12B loan. If successfull, the Greek parliament will be asked to back the latest spending cuts worth €28B on 28-June.

Options Flow Recap June 20th


Macro / Thematic

KBE SPDR KBW Bank (ETF) - 40,000 of the December 30 Calls were bought for $0.10. Also, A block of 10K Dec 26/28 call spread was sold at .33.  They do not looks to be connected. KBE holds the largest banks, including JPM, WFC, C and BAC.

XLF Financial Select Sector SPDR (ETF) - 15,000 of the December 19 Calls were bought for $0.05.

USO United States Oil Fund LP (ETF)2000 wkly 38 calls trade on the offer for .15.

EWT Ishares MSCI Taiwan Index Fund - two block trades as much as 15K Dec 14 puts bought for .74 at -35 delta, which looked like opening transactions.  Overall, 18K puts traded, or 6 times its usual put volume, versus only 286 calls.  It could be protection pursued by investors amid worries of Mainland China stock market, which has been sliding since April 18.

Monday, June 20, 2011

Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)

The most volatile stocks for today sorted by the greatest option volume on top.



No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Trade of the Day: Nike july $82.50/$87.50 bull call spread

The Trade
A trader bought the July $82.50/$87.50 bull call spread 4,000x at $2.

Options 101: The Bear Call Spread

The bear call spread is a bearish strategy used by traders who want to capitalize on a decrease in the price of the underlying stock. The bear vertical consists of buying a higher strike call and selling a lower strike call. The call options will have the same expiration. The bear call spreads have limited risk and limited profit potential. The total premium received to put on the spread, the credit, is the max profit potential of the spread. The max loss is the difference between the two strike prices minus the original credit received.

Options Flow Recap June 17th

Macro / Thematic

EWJ – 20,000 of the September 10 calls were bought for $0.40

EEM – 14,000 of the July 47 calls were bought for $0.70.

RSX – 2000 of the August 37 / 39 strangle was bought for $1.65


Morning Note

June 20, 2011


Equity futures are trading below fair value and are following European indices lower after Eurozone finance ministers have postponed their decision on a €12B loan to Greece until it introduces further austerity measures.

PNC Bank (PNC) confirms acquisition of RBC's (RY) US retail banking operations for $3.45B.

Saturday, June 18, 2011

Weekend Watch: Nerd Fitness

What I think is important to take away from this video is that in order to achieve a higher level of performance, you need a plan and a definable way to determine your success or failure at achieving that plan as well monitoring results. Your goals should be aligned with further progress towards your performance, not with rewards that undermine further success.


No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Weekend Watch: Innovating in Music

Here's an amazing example of innovation in the field of music. How could you innovate and create in ways that others have not yet thought of in the field of trading?



No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Weekend Watch: Behind the Surge in Energy Deals

Keep an eye on energy and the M&A that is shaping the small/mid cap space.



No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Friday, June 17, 2011

Volatility = Opportunity

Most Volatile Stocks (>1MM stock volume, >=5k option volume, >=.6 IV)

Here are the most volatile stocks for today sorted by the greatest option volume on top. Have a great weekend!



No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

Trade of the Day: Barrick Gold October $43/$47 call spreads

The Trade
A trader set up the October $43/$47 bull call spread 871x at $1.63.



Fake Pot

WTF are kids doing.... 

Morning Note

June 17, 2011


Equity futures are trading mixed and close to fair value ahead of the Michigan Consumer Sentiment at 09:55 ET. Greece's PM announced a cabinet reshuffle appointing Evangelos Venizelos as new finance minister. Venizelos was formerly minister of National Defence. Former finance minister Papaconstantinou was appointed environment minister. German Deputy Foreign Minister Werner Hoyer said today Germanyand France will likely reach a compromise on Friday on involving private creditors in the funding of a second bailout for Greece.

Lipper reports equity fund inflows of $9.3B in w/e 15-Jun vs outflows of ($6.5B) in w/e 8-June.

Fed reports balance sheet assets of $2.83T on Wednesday, +$16.3B w/w and +$483.8B y/y.
Holdings of US Treasury securities were $1.58T on 15-Jun, +$21.3B w/w and +$799B y/y.
Holdings of mortgage-backed securities were $914.5B on 15-Jun, ($3.4B) w/w and ($213.1B) y/y.
Holdings of federal agency debt securities were $118.4B on 15-Jun, ($728M) w/w and ($47.8B) y/y.

Libor fixings
Overnight Libor: Dollar: 0.128% vs prior 0.128%; Sterling: 0.567% vs prior 0.567%; Euro: 1.293% vs prior 1.258%
1-month Libor: Dollar: 0.186% vs prior 0.186%; Sterling: 0.628% vs prior 0.628%; Euro: 1.277% vs prior 1.261%
3-month Libor: Dollar: 0.247% vs prior 0.247%; Sterling: 0.825% vs prior 0.825%; Euro: 1.450% vs. prior 1.438%

July WTI crude ($1.24) to $93.71

Natural gas +$0.013 to $4.425

Gold ($1.40) to $1527.69

10-year yield 2.9672%
30-year yield 4.2013%


Asian Markets

Asian markets were mixed to start the day, but turned down on worries about European debt, the US economic recovery, and the chance that China will raise interest rates. Australia finished flat, reversing a morning rise as European debt worries took over as European trade approached. Japan fell. Exporters suffered as the yen appreciated against the euro. South Korea fell. Tech stocks followed the Nasdaq down, also sliding on concerns about Hynix’s (000660.KS) Q2 results. A negative view on Chinese stocks combined with the Greek problems took Hong Kong down. Japan May department-store sales (2.4%) y/y. The yen is trading at 80.45 to the US dollar.

European Markets

European equity markets opened lower and subsequently extended declines on Greek default concerns. Major indices currently trade slightly above the session lows. Peripheral debt remained under pressure, though their equity markets faired relatively well with declines less than those of major indices and Greek stocks receiving a boost up +1.5%, after PM reshuffles cabinet appointing Evangelos Venizelos as new finance minister. Disappointing results from Research in Motion (RIMM) overnight weighed on the technology sector, amongst the leading fallers, whilst Carrefour (CA.FP) slumped after cutting guidance for its French operations.


Today's Economic Releases (Eastern Time)

05:00 Eurozone Construction Orders y/y (Apr); actual (2.0%); consensus n/a
09:55 US Michigan Consumer Sentiment (Prelim.) (Jun); consensus 73.6
10:00 US Leading Indicators (May); consensus +0.3%
Today's Key Events (Eastern Time)

05:00 Kvaerner pre-IPO investor presentation
08:30 ARIAD Analyst & Investor Day
—:— American Association for Vascular Surgery
—:— FDA Panel: DODAC considers Regeneron Pharmaceutical's BLA for Eylea (VEGF Trap-Eye) to treat wet AMD
—:— FDA PDUFA: Acura Pharmaceuticals' NDA for ACUROX (oxycodone HCl) tablets
—:— FDA PDUFA: Celgene's sNDA for ISTODAX for injection for the treatment of peripheral T-cell lymphoma (PTCL)
—:— HPCS 2011
—:— IADC World Drilling 2011 Conference & Exhibition
—:— International Society for Stem Cell Research - ISSCR
—:— Internet Retailer Conference and Exhibition ~ IRCE
—:— Investment Trends Summit

Company Specific News

Earnings
LPS (Lender Processing guides Q2 EPS to $0.54-$0.56 v. Reuters $0.80)
RIMM (Research In Motion reports Q1 EPS $1.33 vs Reuters $1.32; Reports Q1:
Revenues $4.91B vs Reuters $5.14B)
SPRT (support.com acquires SUPERAntiSpyware for $8.5M)
STLD (Steel Dynamics guides Q2 EPS to $0.35-0.40)

M&A
BJ (Leonard Green and CVC Capital submit joint proposal to acquire BJ's Wholesale)
DOX (Amdocs (DOX) to acquire Bridgewater Systems for C$8.20/share in cash)
ING (ING Group to sell ING Direct USA to Capital One for $6.2B cash and $2.8B worth COF shares)
PATK (Patrick Industries completes acquisition of certain assets of Praxis group)
PP.FP (PPR (PP.FP) completes tender offer for Volcom (VLCM); announces subsequent offering period)
ZRAN (CSR (CSR.LN) and Zoran revise merger terms; new combined cash and stock offer valued at $9.19 per Zoran share; reaffirms Q2 revenue guidance)

Offerings
AEGR (Aegerion Pharmaceuticals files for 4.25M share offering through Jefferies and Deutsche Bank; 1M of which is from holders. The company is offering 3.25M shares and selling holders are offering 1M shares)
ASTM (Aastrom Biosciences files $100M mixed securities shelf registration)
CPF (Central Pacific Financial 2.9M-share secondary (all for US Treasury) priced at $12.75/share through Sandler O'Neill. The offering had been expected to be 5.6M shares)
EVR (Evercore Partners 4.8M share secondary offering for company and holders priced at $32.50 through Goldman Sachs, BofA Merrill Lynch, and Evercore)
RATE (Bankrate 20M-share (of which 7.5M is for holders) IPO priced at $15/share through Goldman Sachs and BofA. The offering was expected to price in the range of $14-16/share.)


Newspaper Articles / Headlines

Barron's
Barron's Weekday Trader is positive on International Flavors. Barron's Weekday Trader is positive on IFF citing the company's geographical diversification into emerging markets, IFF's focus on product innovation and the company's relatively new managment team. In addition, the article notes the stock currently trades below its 10-year average P/E and could see profitability gains in the near future through margin expansion.

Financial Times
Citi faces hurdles in selling consumer finance unit One Main. The FT, citing people familair with the matter, reports that bidders are concerned about its funding as a standalone business bidders are trying to establish how much debt the unit will need to raise as well as how much funding Citi will commit to seal the deal bidders are waiting for reviews by credit rating agencies which are expected in the next two weeks as well as audited accounts from Citi for the unit Blackstone (BX0 is in a consortium of potential bidders.
UK mobile operators tie-up to take on mobile ad market. The FT reports that Everything Everywhere, O2 (TEF.SM) and vodafone (VOD.LN) announced the venture today and seeks to quicken the pace at which smartphones can be used to buy goods and services. The venture is an attempt to win some of the revenue from advertising on handsets currently taken by Apple (AAPL) and Google (GOOG) 3 (13.HK) wasn't invited to join the venture. The venture needs approval from European competition authorities.
Waitrose to compete with Ocado in online shopping. The FT reports that
Waittrose will start a marketing campaign for its online arm and will start delivering within the M25 area next month. Waitrose had been prevented from competing until 1-July. Ocado makes 50% of its sales in that area according to its prospectus.
EasyJet to offer flights from Essex. The FT reports the company is moving three planes and 150 staff there in an attempt to cut costs as London airports are increasingly crowded and expensive. The article also notes some benefits will be gained as there will be easy transport links to Olympic sites.
Airbus receives $6.6B order from GoAir for 72 A320 aircraft.
Ford working on new global small-car platform. The FT, citing a company executive, reports that the company hopes to replicate the success of its Figo model, and will produce a new small car in various parts of the world. The company will need to expand capacity to do so.
- Itochu beats off Xstrata to buy Columbian coal mine. The FT reports that Itochu as bought a 20% stake in the assets owned by Drummond for $1.52B.
- Regulators draft bank capital requirements. The FT, seemingly citing a draft copy of the proposals, reports that there will be a tiered regime of extra capital requirements each institution will be placed in a 'bucket' with a particlular surcharge depending on size, global reach, complexity etc
banks could move between buckets as circumstancesa change according to people briefed on the discussions, at least 8 banks are targeted for a surcharge of 2.5% of assets above the Basel III minimum of 7%; these include Citigroup (C), JP Morgan (JPM), Bank of America (BAC), Deutsche Bank (DBK.GR), HSBC (HSBA.LN), BNP (BNP.FP), Royal Bank of Scotland (RBS.LN), and Barclays (BARC.LN) Goldman Sachs (GS), Morgan Stanley (MS), UBS (UBSN.VX) and Credit Suisse (CSGN.VX) would be in the next category down and face a 2% surcharge another 10-15 banks will face surcharges ranging from 0.5-2%. There is an empty bucket at the highest level, carrying a 3% surcharge, acting as a deterrent on risky behaviour

Globe and Mail
London Stock Exchange (LSE.LN) reviewing its bid for TMX Group. In an interview, CEO Xavier Rolet tells the Globe and Mail that TMX shareholders are giving him positive feedback, and he does not rule out a higher offer.

Le Figaro
- French government confirms the replacement of CEO Anne Lauvergeon. The newspaper reports that the French government has confirmed that Anne Lauvergeon will leave her position as scheduled by the end of the month and will be replaced by Luc Oursel as reported by La Tribune yesterday

London Times
Virgin Money to bid for both Northern Rock and branches of Lloyds Banking Group. The Times reports that Richard Branson says Virgin Money has the financing to buy both. The context of his comments is not made clear.

New York Times
- Maker of silicon wafers gets $150m from the Energy Department. The NYT reports that the company, 1366 technologies, will receive the money as loan guarantees, and has invented a way to reduce wastage in casting wafers, cutting the cost of manufacturing solar cells by about 40%.
Wall Street set for a summer of cuts. with weak markets and increasing regulations, many of the biggest firms are preparing for cost-cutting
according to a person close to the matter . Goldman Sachs (GS) have decided to cut 10% or $1B of non-compensation expenses in the next 12 months layoffs will also happen but no targets finalized. According to a senior executive, Bank of America (BAC) is likely to cut some staff from its securities division. According to a person briefed on the bank's plans, Credit Suisse (CSGN.VX) is planning cuts in its investment banking unit
diversified companies such as JP Morgan (JPM) and Citigroup (C) are in better shape but JP Morgan is trying to cut non-compensation expenses according to someone briefed on the matter.

Nikkei
Toyota Motor president Akia Toyoda tells shareholders that domestic, foreign production will return to levels planned at beginning of year in July.

Silicon Valley Insider
Spotify has signed deals for US launch. The first two sentences of the article say that the deals have been signed, and then cite an executive saying they are being signed as he speaks, so it's not really clear what the timing is here. The executive tells SVW that the service will not start up in the US before 5-Jul.

Wall Street Journal
Banks enter market for claims related to Madoff fraud. The WSJ reports that. Buyers of victim's claims offer defauded investors a fraction of the claim and hope to get a larger payout when the settlement is made final at some point in the future. A year ago, buyers were offering 20-30 cents on the dollar and now prices have risen to 70-75 cents on the dollar according to people familiar with the market, two banks being sued by the Madoof trustee, UBS (UBSN.VX) and Royal Bank of Scotland (RBS.LN) are amongst those bidding on the claims Goldman Sachs (GS) and Deutsche Bank (DBK.GR) are also involved in the market.
WSJ likes Bombardier. A "Heard on the Street" column does not go so far as to say the stock's price should be higher, but it does say that if the CSeries works and is ready on time, the company will have a lock on the 150-passenger plane market for at least a couple of years.
SEC investigating rating agencies. The WSJ, citing people familiar with the matter, reports that: The SEC is weighing civil fraud charges against some credit rating companies for their role in some mortgage-bond deals, specifically whether they did enough research to be able to rate securities adequately. The SEC is looking at S&P (MHP) and Moody's (MCO). The SEC will announce a new wave of investigations against banks and other financial firms shortly, with a second wave of settlements in the fall and a final third group by the end of the year. JP Morgan (JPM) is one of the first banks in line for a settlement of charges, expected within weeks related to the sale of a $1.1Bmortgage-bond investment called squared. The bank and other firms facing allegations of fraud in realtion to these bond deals are expected to pay half or less than Goldman Sachs (GS) did to settle SEC charges. Other firms in the SEC probe include Citigroup (C), Morgan Stanley (MS), and Bank of America (BAC).
Sina Weibo having large effect. The WSJ focuses on a billionaire's announcement that he was leaving his wife to elope with his mistress, and gives an unsurprising analysis of the social media service. The article notes that much more can be communicated in 140 Chinese characters than in 140 Western ones, and also looks at the ways people have used Weibo to criticize the government or Morgan Stanley (MS) -- which E-Commerce China Dangdang (DANG) CEO Li Guoqing did.
WSJ is cautious on Fiat. A "Heard on the Street" column notes that the company is betting everything on its integration of Chrysler, and Daimler's (DAI.GR) experience shows that cross-ocean car-company mergers are not guaranteed to work.
RSA only offering to to replace SecurID tokens for a third of its customers. The WSJ reports that replacing the tokens for everyone might take months, so the company is offering transaction and authentication monitoring services for customers that aren't protecting intellectual property. A person familiar with the matter tells the WSJ that RSA has increased token production by a factor of six.


Research

Citi: downgraded CLS, RIMM
Credit Suisse: downgraded DSX
JP Morgan: upgraded ITMN; downgraded RIMM
Keefe Bruyette: upgraded FCF; downgraded LPS
Nomura Securities: upgraded SPLS
Rodman & Renshaw: downgraded JRJC
TD Newcrest: upgraded POT
UBS: upgraded ATU, MWW, CIEN
Wunderlich: downgraded ETE


No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.