hr: Money

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Options to insure against drop in US stocks can be resorted to as protection. For the third day the costs of using options slid for three days now, which has been within a month the longest streak ever. Computer maker Dell Inc. discloses in a report that profits have been much better compared to estimates.

Dell on June $21 has seen its puts falling down by 84 percent, which was the second greatest decline among US equity options. Regarding American Airlines parent AMR Corp., traders are now speculating on a rally. The airline company has suffered a setback by nearly 50 percent in 2008, following the end of merger talks between two rivals and the lowering of jet fuel costs. Traders also speculate on hunch that Masco Corp. this year will rebound from the 14 percent loss it incurred.

There has been a drop in Jet fuel for a second day, declining by 0.5 percent to $3.80 per gallon.

When UAL Corp.’s United Airlines realized that it would not be advantageous to merge with US Airways Group Inc., since the merger would not enable to company to save on labor costs, UAL is now trying to merge with Continental Airlines Inc.

Based on the present conditions and with a “neutral” rating, AMR, whose stock was unchanged at $7.19, probably won’t have to file for protection under Chapter 11 this year. The company’s July $10 calls, yielded an increase by 17 percent to 35 cents.