Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [US] 
    U.S. stock market report [.N] 
1626 ET 15Oct2007-Merrill's guide to spotting bubbles  
----------------------------------------------------------------------------- 
      It has become somewhat fashionable these days to refer to every 
outperforming asset class as being in a bubble, Merrill Lynch chief investment 
strategist Richard Bernstein wrote in a note to clients. But not all are 
bubbles. 
      To spot a bubble, investors should look out for the following: 
      *Unusually available and generous liquidity. 
      *Increased use of leverage by investors 
      *Democratization of the market 
      *Increased turnover of assets 
      *Increased new issues 
"If these five characteristics are present in a market, then the odds are the 
particular market is significantly overvalued as well," Bernstein wrote. 
     Reuters Messaging: rm://[email protected] 
1623 ET 15Oct2007-US STOCKS-Credit concerns, Citigroup weigh on Wall Street 
----------------------------------------------------------------------------- 
   The Dow Jones industrials and S&P 500 posted their worst day in five weeks 
on Monday after a gloomy outlook from Citigroup and news that big banks were 
forming a fund to shore up the commercial paper market dashed investor hopes 
for a fast resolution to the credit crunch. 
   For more, please click on [.N] 
    Reuters Messaging: rm://[email protected] 
1619 ET 15Oct2007 - Investors eye XLF calls on share weakness 
----------------------------------------------------------------------------- 
    Call options in the Financial Select SPDR <XLF.N> exchange traded are 
unusually active on Monday after Citigroup comments soured the financial sector 
and weighed on the broad market. 
    XLF shares had recovered from the summer lows but have given back 2.15 
percent to stand at $34.61 in afternoon trade. The volume of about 124,000 
contracts had an unusual bias as reflected by the put/call reading, which 
indicates strong call activity, wrote Interactive Brokers Group analysts Andrew 
Wilkinson and Rebecca Engmann Darst in their commentary. Particularly active 
were the Nov and March $35 calls and the Dec $38 calls. Activity was also seen 
in Dec $31 and $35 puts. But it was not clear if investors are buying calls 
expecting a rebound or closing their trades to collect profits, they said. 
         Reuters Messaging rm://[email protected] 
1441 ET 15Oct2007- Volatility rebounds as financial fears take spotlight 
 -------------------------------------------------------------------------- 
    The CBOE Volatility Index <.VIX> or VIX surged 11 percent to 19.68 as 
investors reached for the October VIX calls, said Interactive Brokers Group 
option analysts Andrew Wilkinson and Rebecca Engmann Darst in their commentary. 
The December VIX futures contract broke through 20 indicating investors fear 
"that this is not merely a spike, but that larger concerns may be at play," 
they said. The October VIX calls are most active from strikes at 18 through 
22.5. On options tied to November VIX futures, the 25 calls has seen 13,473 
lots trade at $1 late on Monday suggesting a willingness to protect a 
volatility surge above 26, they said. The active buying in November extends as 
high as the 30 line in the session, they said. 
    Reuters Messaging rm://[email protected] 
1414 ET 15Oct2007-Buy DNA Jan calls to capture potential Q4 events-Goldman 
------------------------------------------------------------------------------ 
    Buy Jan08 $80 Genentech Inc. <DNA.N> calls for $3.40 to capture potential 
upside through several fourth quarter catalysts, recommended Goldman Sachs 
option strategists Maria Grant and John Marshall. In a note, they said the 
trade profits at expiration if Genentech goes above $83.40, 18 percent below GS 
analyst's 12-month price target of $102. 
    "We estimate a 3 percent breakeven for investors looking to trade out in 
mid-Dec, even if volatility is flat," they said. Investors looking to lower the 
cost can take advantage of unusually flat call skew to trade $80/$90 call 
spreads. "We're bullish on the stock; Q4 catalysts could create volatility," 
they said. Genentech reports results after the bell. 
    Reuters Messaging rm://[email protected] 
1340 ET 15OCt2007-Citigroup profit drop fuels heavy option activity 
------------------------------------------------------------------------------ 
    There was heavier-than-usual options volume in Citigroup Inc. <C.N> after 
the largest U.S. bank said it would suspend stock buybacks and offered a gloomy 
outlook. 
    Shares of Citibank, which announced a 57 percent drop in quarterly profits, 
fell 3.47 percent to $46.21. Roughly 195,370 options were in play in early 
afternoon trade with a lot of interest at the Oct $45 line where 24,066 puts 
traded at 25 cents a contract. 
    Reuters Messaging rm://[email protected] 
1156 ET 15Oct2007-Options fear gauge lights up as stocks fall 
------------------------------------------------------------------------------ 
    Volatility looms large on Monday as U.S. stocks fall after oil prices 
surged to a record $85.30 a barrel, threatening to hurt consumer and business 
spending. The financial services sector was also hit on renewed worries about 
the effects of the credit squeeze and Citigroup's suspension of share 
buybacks. 
    The CBOE Volatility Index <.VIX> jumped 10.04 percent to 19.51, just below 
the 20 reading. Risk perceptions are high. "I think there are concerns on what 
the implications will be for higher oil prices going forward on corporate 
profits," said Scott Fullman, director of investment strategy at I.A. Englander 
& Co. 
    Reuters Messaging rm://[email protected] 
1132 ET 15Oct2007-Wall St drops further, Dow slides 1 pct 
------------------------------------------------------------------------------ 
    U.S. stocks fell further on Monday, sending the Dow Jones industrial 
average down more than 1 percent, as shares of financial services companies 
slid on renewed concerns about the effects of the credit squeeze and 
Citigroup's <C.N> suspension of share buybacks. 
    A surge in crude oil prices also hit the market. 
    For more please double click [.N] 
    Reuters Messaging rm://[email protected] 
0728 ET 12Oct2007-U.S. earnings diary for Oct. 15 
------------------------------------------------------------------------------ 
    Monday's earnings calendar includes quarterly results from Citigroup Inc. 
<C.N>, Charles Schwab <SCHW.O>, Kohl's Corp. <KSS.N>, Genentech Inc. <DNA.N> 
and Mattel Inc. <MAT.N>. 
    For more please double click [RESF/US] 
    Reuters Messaging rm://[email protected] 
0725 ET 15Oct2007-U.S. economic diary for Oct. 15 
------------------------------------------------------------------------------ 
    Monday's economic agenda includes the New York Federal Reserve's Empire 
State Manufacturing Survey for October. 
    For more please double click [ECI/US] 
    Reuters Messaging rm://[email protected] 
Keywords: MARKETS STOCKSNEWS