The New York Times [registration required] reports that the subprime meltdown has zipped across the Pacific to wipe out the fortunes of Japanese housewives who trade currencies after putting their children to sleep. Betting an average of $9.1 billion a day -- 20% of daily foreign exchange (FX) volume -- on a decline in the Yen relative to the dollar, many of these housewives were wiped out when the August credit crunch caused U.S. hedge funds to panic -- driving up the Yen's value and tanking their trades.

Japanese online investors lost $2.5 billion trading currency in August. And for many Japanese households, housewives' FX trading had been kept in the closet. Japanese tradition frowns on making money through means other than hard labor -- such as market speculation.

But this taboo is out in the open thanks to Mayumi Torii, according to the Times, a 41-year-old mother of one who said she earned $150,000 since she started margin trading in currencies early in 2006. Torii now appears on TV promoting her FX Beauties Club so she can "stand on my own economically," a necessity she discovered after her first marriage ended in divorce, and she and her son had to live off her meager savings. "I never want to feel that vulnerable again," she said.

Continue reading Subprime plunge pings Japanese housewives

Subprime plunge pings Japanese housewives originally appeared on BloggingStocks on Sun, 16 Sep 2007 09:15:00 EST. Please see our terms for use of feeds.

Rackable Systems (NASDAQ: RACK) implied volatility not confirming Dell (NASDAQ: DELL) speculation. RACK, a provider of servers and storage products, is recently up .54 to $12.49. Market speculation is circulating that Dell is interested in RACK. RACK June option implied volatility of 51 is below its 26-week average of 57 according to Track Data, suggesting decreasing price risk.

Lyondell Petro (NYSE: LYO) volatility stays Elevated as Occidental Petroleum (NYSE: OXY) says it will sell LYO Holdings. LYO a global manufacture of chemicals, plastics and fuel products is recently up $2.91 to $36.00. OXY announced plans to sell all of its 20,990,070 holdings in LYO. LYO June option implied volatility of 34 is above its 26-week average of 31 according to Track Data, suggesting larger risk.

Option volume leaders today are: Dendreon (NASDAQ: DNDN), Advanced Micro Devices (NYSE: AMD), Amgen Inc. (NADSAQ: AMGN) and Lyondell Petro (NYSE: LYO).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Option update 5-11-07: RACK implied volatility not confirming DELL speculation originally appeared on BloggingStocks on Fri, 11 May 2007 12:55:00 EST. Please see our terms for use of feeds.