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  • datbehardwork datbehardwork Jul 7, 2007 9:40 AM Flag

    If D.E. Shaw shorted SHLD they just lost their #$%$

    No mention of RSH, I believe it was just manipulation once again, but Sears was up big on Fri. which means Shaw lost on it's hedge fund short.By Doris FrankelCHICAGO (Reuters) - Shares and options in major retailers Macy's Inc. (M.N: Quote, Profile, Research) and Target Corp. (TGT.N: Quote, Profile, Research) jumped on Friday on rumors about deals or divestitures.Shares of department store operator Macy's, known for its Macy's and Bloomingdale's chains, climbed as much as 8.1 percent before closing 5.6 percent higher at $41.99. Target ended up 6.1 percent to a new closing high of $68.10.Analysts said Macy's investors seemed to be positioning for a possible merger, reflected by a sharp rise in the department store's options call volume, as old rumors of a deal resurfaced."There is some renewed takeover speculation in Macy's heading into the weekend. Therefore, investors are buying shares and some options in case something happens," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York."The latest chatter today in dealing rooms is that super-investor Eddie Lampert may be looking to tie Macy's and Sears Holdings together," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group, in an e-mailed report.That spurred options traders to wade in and buy more calls hoping to profit from a share rally in Macy's.Billionaire investor Eddie Lampert is the chairman of Sears Holdings Corp. (SHLD.O: Quote, Profile, Research), the company that runs the Sears and Kmart retail chains."We do not comment on rumors or speculation," a spokesman for Sears Holdings said."It is the third Friday in a row that has seen unusual action in Macy's shares," said Frederic Ruffy, analyst at options education firm Optionetics.Macy's declined to comment on market speculation.At Target, rumors percolated that it may be looking to sell its credit card business, Wilkinson said."Target is moving higher on heavy stock volume on rumors that they could be looking to sell their credit card business," said Lefkowitz.Target was adamant about keeping its credit card business in November saying that the unit generated big profits and drove sales.A Target spokeswoman said the company does not comment on market speculation, but added: "Over a long period of time, we have been open with our shareholders about our performance, our strategy and our outlook for our credit card operations."Just minutes before the close, more than 66,500 options traded in Macy's, out of which 46,910 were calls, giving the right to buy its shares at a predetermined price and time, figures from market research firm Track Data showed. That far outpaced Macy's regular turnover of 16,207 contracts.Most of the action was in the July calls granting investors the right to buy Macy's shares at $42.50 and $45 where more than a total of 13,400 contracts traded. The cost of those contracts rose in value during the day.Target options volume also soared with a huge pickup in calls totaling more than 75,700 contracts compared to 42,161 puts, outstripping its normal turnover of 46,536 contracts, according to Track Data.Investors focused on Target's July $67.50 and $65 strikes where 31,000 contracts combined moved.Shares of Sears Holdings ended 3.4 percent higher at$174.06.

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