Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

by 4/18/2001 10:46 AM
Stocks quoted in this article:
Intel (INTC 29.30) fired up the Nasdaq Composite (COMP 2022.5) this morning by reporting earnings that encouraged Wall Street. Ironically, although INTC beat Street estimates by a penny, it was the worst quarter for the semiconductor giant in years. Earnings excluding one-time costs came in at 16 cents per share. Net income fell 82 percent to seven cents per diluted share, from 39 cents per share a year earlier, due to weak demand and slowing economic growth.

So why is the market cheering? INTC gave forward guidance that projected the bottom is near for the personal computer business, that excess inventory would be worked though shortly, and that beginning next quarter the outlook would brighten. Analysts are sharply divided on whether this is realistic to assume. Meanwhile, as they argue, the shares are up over 12 percent today and the glow is propelling the COMP over 2000 for the first time in over a month.
permalink


by 4/18/2001 9:15 AM
Stocks quoted in this article:
J.P. Morgan Chase (JPM 45.37) reported first-quarter earnings this morning of 70 cents per share, beating Street estimates of 66 cents per share. However, JPM fell short of the $1.10 per share that was posted during the same quarter a year ago. JPM's investment ban saw revenue drop seven percent from a year ago, while its investment management and private banking revenue dropped by 23 percent from the previous first quarter.

The stock is currently clinging to support at the 45 level, above both of its 10-day and 20-day moving averages. Yet despite the shares recent surge higher, options players are pessimistic on the security. JPM's Schaeffer's put/call open interest ratio (SOIR) stands at 1.1, with open puts easily outnumbering calls. Potential resistance awaits at the 50 level. This is the site of peak front-month call open interest with more than 12,000 contracts in residence. The May series is lining up similarly with more than 5,000 already at the 50 strike. <
permalink


by 4/18/2001 8:51 AM
Stocks quoted in this article:
The AMEX Pharmaceutical Index (.DRG - 396.91) turned in another solid showing on Tuesday. The group added about 2.7 percent, bounding higher from its rising 10-day moving average.

This morning Pfizer (PFE - 42.41) reported first-quarter results. The drug giant posted profits of 33 cents a share. The Street had expected PFE to report earnings of 31 cents a share.

The .DRG will attempt to tackle the 400 level in today's trading. The level has acted both key support and resistance for the index over the past two years. <
permalink


by 4/18/2001 8:50 AM
Stocks quoted in this article:
Nautica Enterprises (NAUT - 15.35) has given back nearly all of its gains in 2001, after jumping out to a quick start this year. The pullback in the shares over the past month has found temporary support in the form of the stock's rising 10-month moving average.

In yesterday's trading the out-of-the-money July 17-1/2 call was active by result of some large block activity. 3,350 contracts changed hands, with approximately 2,800 contracts of the volume translating into new open interest. Accounting for much of the action was a 2,800-contract block that changed hands at 1.05.
permalink


by 4/18/2001 8:49 AM
Stocks quoted in this article:
This morning conglomerate Tyco International (TYC - 46.15) reported second-quarter earnings of 65 cents per share. The consensus estimate was for the company to post profits of 61 cents per share.

The stock has added nearly 15 percent from its 52-week low logged earlier this month, in front of the report. From a longer-term technical perspective, the stock may find resistance from its overhead 20-month moving average, which stands at approximately 49.

In yesterday's trading, the out-of-the-money April 47-1/2 call was active. The option saw over 6,100 contracts change hands yesterday. Open interest rose by nearly 4,900 contracts in response
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

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.