Today’s tickers: PWRD, ADBE, VLO, VIX, COH, BKC, ANF, VALE & IPG

PWRD – In a perfect world shares of PWRD would have rallied on the news that the company lifted its revenue forecast for the second quarter, alas, the stock has dipped slightly today by less than 1% to $29.06. The Chinese online game developer edged onto our ‘hot by options volume’ market scanner after one investor was seen taking a bullish stance in the December contract. Perhaps this individual is a fan of Battle of Immortals, which PWRD developed as a massive multiplayer online role playing game that has subsequently produced stronger-than-expected revenues. The investor targeted the December 35 strike price to purchase approximately 3,000 calls for an average premium of 3.22 per contract. Shares of the gaming company must surge 32% from the current price in order for the trader to begin to amass profits at the breakeven point of $38.22. Apparently, this gaming-bull expects the stock to blow through the current 52-week high for PWRD of $30.00 attained on June 19, 2009. – Perfect World Co., Ltd.

ADBE– Shares of the diversified software company are lower today by more than 6% to $27.49. Our attention was drawn to the October and January 2010 contracts where investors took to selling straddles. The nearer-term October contract had a 5,000-lot straddle sell for a gross premium of 5.43 each at the 30 strike price. The investor responsible for the transaction will retain the full premium if shares settle at $30.00 by expiration. Losses would accrue if shares were to shift outside of the breakeven point to the upside at $35.43 or below the breakeven point to the downside at $24.57. Further out at the January 2010 30 strike price, another trader employed the use of a sold straddle strategy in the amount of 6,700 contracts for a gross premium of 7.25. This individual is also looking for shares to gravitate to $30.00 by expiration at the start of next year. We note that both straddles were tied to underlying stock transactions at the time of sale. – Adobe Systems, Inc.

VLO– The maker of refined products such as conventional gasoline and diesel fuels has shed more than 4.5% off its share price today to stand at $16.35. The bearish movement in the underlying was matched by pessimistic option trading by investors. The near-term July contract had more than 4,000 calls sell for an average…
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