Housing_Rebound-300x201Spain’s 10-year bond yield is 5.5%. European stocks are higher this morning.

Housing starts jumped 15.0% in September to a seasonally adjusted annual rate of 872,000 (consensus 768,000) while building permits increased 11.6% to a seasonally adjusted annual rate of 894,000 (consensus 815,000).  That was the most new housing starts since July 2008 and it was accented by an 11.0% jump in single-family starts to 603,000.  Single-family starts haven’t been above 600,000 since August 2008.  Better than expected residential construction should help boost the rate of GDP growth.

Alcatel-Lucent (ALU) is a $1 stock that is near its all-time lows.  Yesterday, there was a buyer of 10,000 Jan 1 calls.  This was 14.4x normal volume. ALU won a contract from China Mobile yesterday and will report earnings on November 2.  These options are trading at $0.20 on the ask.

On the bearish side, there was a buyer of 10,000 Oct 22 and 23 puts in Terex Corp (TEX).  The stock opened at $23.28 this morning and these options expire on Friday.

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