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

by 3/5/2001 2:18 PM
Stocks quoted in this article:
American Eagle Outfitters (AEOS – 27-1/8) is a retailer that specializes in casual apparel and footwear for young men and women. The stock is trading off more than 15 percent today on above-average volume after J.P. Morgan cut its rating on the shares from an outright "buy" to a "long-term buy." Moreover, the brokerage heavyweight extended its 12-month price target of $40 for AEOS out to 18 months. JPM officials cited increasing competition from the likes of Abercrombie & Fitch (ANF – 28.16) and Gap (GPS – 24.45) as one of the reasons behind its actions.

Today's gap lower has taken the shares below their 20-week moving average. AEOS has not closed below this intermediate-term trendline since last July. The stock remains above its 10-month and 20-month moving averages, trendlines that recently exhibited a bullish crossover.

Speculators are stoking AEOS options pits more than usual today, as over 1,000 contracts have changed hands on the March 36-5/8 call, which was previously home to 1,170 open contracts. The bulk of this volume traded as a block of 1,000 contracts that went off between the bid and the ask price around 1:45 p.m.
permalink


by 3/5/2001 12:22 PM
Stocks quoted in this article:
United Parcel Service (UPS – 57.17) said late last night that it plans to acquire shipping and packaging company Mail Boxes Etc. for an undisclosed cash sum. UPS officials said they want the purchase to be completed as soon as possible. UPS said the transaction will help expand its foothold in the e-commerce, financial services, and small business milieus.

Mail Boxes Etc. is a division of US Office Products (OFIS - 0.49), which is trading 40 percent lower today. UPS is trading marginally higher on the news. The stock still remains below all of its significant moving-average trendlines.
permalink


by 3/5/2001 12:15 PM
Stocks quoted in this article:
The mechanics union of Northwest Airlines (NWAC – 22-1/4) said today it plans to begin a strike on March 12 if demands are not met at a meeting with airline officials on March 7 (Wednesday). Officials at NWAC noted that President Bush has said he will appoint an emergency board that could postpone a stock for up to two months if an agreement is not reached at the scheduled meeting. Officials also said the airline will continue to operate its full schedule regardless of the strike threats.

NWAC shares are hovering just around the breakeven mark. For the past two sessions, the equity has been pinned beneath support at its descending 20-day trendline, which stands around the 22-1/2 level. The security has not closed above both its 10-day and 20-day moving averages simultaneously since January 8.
permalink


by 3/5/2001 12:09 PM
Stocks quoted in this article:
Engelhard (EC – 25.48) is enjoying a nice boost today following an upgrade by Lehman Brothers from a "market perform" rating to a "strong buy" rating. A developer of technology-based performance products and engineer materials for a wide rage of industrial customers, EC has been on a steady uptrend since the mid-December and has gained nearly 30 percent since the beginning of the year. The stock is currently trading at levels it has not seen since May 1996. In spite of this steady upward movement, investors are growing increasingly pessimistic on the stock, as the number of shorted shares has jumped by 79 percent from the last reporting period.
permalink

by 3/5/2001 11:59 AM
Stocks quoted in this article:
Online auctioneer eBay (EBAY – 38-7/16) is rising in late-morning trading today after it was reported that the firm settled its lawsuit with competitor Bidder's Edge, which had been featuring EBAY merchandise on its site. Bidder's Edge will stop this process and will also pay EBAY an undisclosed sum. In unrelated news, it hit the wires shortly after the opening bell that EBAY has established a software agreement with Rational Software (RATL – 32-1/2).

One of only a handful of Internet names to actually report profitable earnings, EBAY has managed to avoid single-digit territory, although it does remain almost 70 percent off its all-time high reached last March. The stock continues to trend below all of its significant moving-average trendlines.

On the options front, EBAY faces minor out-of-the-money call open interest at the 45 strike in both the March and April series. On the put side, the March 40 and 45 strikes are both home to heavy in-the-money put open interest, with 5,788 and 6,957 open contracts, respectively. Schaeffer's put/call open interest ratio (SOIR) for EBAY currently stands at 1.04, its highest reading over the past 12 months. This indicates a large degree of pessimism from the speculative crowd. <
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.