Schaeffer's Trading Floor Blog
Stocks quoted in this article:
As of this moment, the VIX is down 0.06 from yesterday's close. OK, no big deal that its down 0.06, but this is on a day in which the S&P 500 is down six points and has dropped below the 1200 level. <

permanent link

Do you follow EBAY?

by 6/24/2005 1:39 PM
Stocks quoted in this article:
Do you follow EBAY stock? If you are a short-term trader, you may want to be aware of some option activity I just noticed. 1,000 August 25 strike calls crossed the tape about fifteen minutes ago. The blocks appeared to go off at the offer price of $9.80, which I would interpret as a purchase. In essence, this appears to be an institution making close to a one million dollar bet that the shares will rally over the short term. Perhaps they are using an in-the-money option to hedge against the stock not moving higher or actually declining moderately. In such an event, the option would retain most of its premium due to the large amount of intrinsic value. A more aggressive option, such as a 35 strike call could result in a total loss if the shares did not move higher, although the leverage would be greater.

permanent link
Stocks quoted in this article:
We were just talking about this interesting development on the trading floor. Check out the put/call open interest ratio on Johnson & Johnson. (JNJ: scorecard, quote, chart) The 1.35 reading is around 15-year highs! Isn't this amazing within the context of the stock recently achieving all-time highs... What a great example for those of you who try to explain to your friends that negative sentiment sometimes persists on strong stocks...Turning to the charts, double-barreled support in the 64-66 area, which is the March 2002 peak before the February 2005 breakout. This is also the area of the 10-unit monthly moving average, which equtes to a 200-day trendline.

permanent link
Stocks quoted in this article:
Watch the Transports, as trucking giant Yellow Roadway (YELL) just came out a few minutes ago and increased their second quarter earnings to the higher end of expectations. Given this group has really been hammered lately due to higher oil - there's a chance we could see a sharp snapback rally from some of these names. <

permanent link

Morning Update

by 6/24/2005 10:37 AM
Stocks quoted in this article:
It's been a busy morning around here so far and this is my first chance to get all caught up and see what's happening. The big news is oil was up flirting with $60 a barrel once again this morning but has recently sold-off some and now a good majority of the energy-related names are trading in the red. But fear not, as gold and metals continue to shine yet again. Other than that bonds are higher thanks to the great May durable goods numbers.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.