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On Thursday, Veritas Software (VRTS – 136-7/8) tallied third-quarter earnings of 16 cents per share, surpassing brokers' projections by two cents per share. This maker of software for data-storage management also announced that pro-forma fourth-quarter profit and full-year 2000 revenue will be higher than expected because of increasing demand. In response, Lehman Brothers Holdings reiterated its "buy" rating on VRTS this morning.
The stock has soared greater than 14 points, or over 12 percent, higher in mid-afternoon trading, climbing back above its 10-day and 20-day moving averages. The shares also have obtained sturdy support from their uptrending 10-month moving average, which has offered superb support on a monthly closing basis since April 1997.
The VRTS October 135 put has been active today on volume of 3,981 contracts. Open interest on this now out-of-the-money option stands at 3,783 contracts, so most of this activity could result in liquidations.