Company News
Wednesday, May 19th, 2010



PTV May 18, 2010 - 12 months

Pactiv Corp. (PTV)

Shares of Pactiv Corp. (PTV) shot more than 18% higher on Monday, following reports that the company was in takeover talks with Apollo Global Management. However, Standard & Poor's Ratings Services stepped in yesterday morning and stated that if the deal goes through, it will downgrade PTV's credit rating. S&P placed PTV's BBB corporate credit rating on CreditWatch negative.

PTV appears to have handled the news rather well., the stock gapped above former resistance in the 27-27.50 region, which capped PTV in October 2009. However, the shares have stalled in the 28-28.50 area, which provided resistance for the equity in September and October 2008.

PTV may 18, 2010



Naturally, short-term options traders have placed a wealth of bullish bets on PTV. The stock's SOIR plunged overnight from a reading of 0.47 to today's perch at 0.35, in the seventh percentile of its annual range.

Furthermore, data from the ISE and CBOE indicates that calls bought to open have nearly quintupled puts purchased during the prior two weeks. Short interest has also turned higher during this timeframe, rising nearly 17% during the most recent reporting period. While much of the recent call buying could be bullish speculation by options traders, we could also be seeing short sellers hedging fresh short positions on the security.

DRYS may 18, 2010 - 1 year

DryShips Inc. (DRYS)

DryShips Inc. (DRYS) has returned to the forefront less than a week after the company released its first-quarter earnings report, as SAC Capital Advisors LP announced that it cut its shares stake in the company by 83% to 70,043. However, traders appear to be ignoring the news, as DRYS was up more than 1.5% in pre-market activity.

Technically, the shares appear poised to rebound from long-term support in the $5 region this morning. The equity has not closed a session below this level since July 2009. However, there is the potential for resistance at DRYS' declining 10-day moving average, above which the stock has not closed since May 3.

DRYS may 18, 2010



Last Wednesday, options speculators piled into DRYS puts, with volume of 13,181 contracts more than doubling the stock's daily average. The most active strike was the June 7 put, where some 4,400 contracts changed hands. Nearly all of this volume translated as fresh positions, as open interest at the June 7 put rose by roughly 4,000 contracts to 7,103 contracts.

Overall, options traders are quite bearish on DRYS, as the stock's SOIR of 0.52 ranks above 90% of all those taken during the past year. That said, this negativity may be in the process of unwinding, as data from the ISE and CBOE reveals that roughly 5.5 calls have been bought to open for every one put purchased on DRYS during the prior two weeks. As investors grow more bullish toward the security, it could provide additional buying pressure for the shares.




Success is simple. Do what's right, the right way, at the right time.




Take control of your future prosperity the Easy way. Become a member of Stock Options Made Easy today!



Back to Stock Options Made Easy from Company News-May 18, 2010



Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.





Search Stock Options
Made Easy




newsletter-free


Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter











Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter