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More bad news for tobacco and food stalwart Philip Morris (MO - 21-1/4). This morning, the company reported operating income of 77 cents per share for the fourth quarter. This came in a penny per share shy of the Street consensus estimate. The shares are trading fractionally lower in response. MO shares have been bedraggled for quite some time, losing 57 percent in 1999; however, the option activity remains pretty mixed. With the shares trading at 21-1/4, the similar distance out-of-the-money February 22-1/2 call and February 20 put had a total of 6,134 contracts and 2,863 contracts of open interest, respectively, at the close of yesterday's trading. It should be noted, though, that the February 22-1/2 put is itself the site of over 6,800 contracts of open interest. Nevertheless, until the speculative sentiment as a whole becomes more pessimistic on MO, the likelihood for a sustained rally is small.