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by 1/4/2001 3:17 PM
Stocks quoted in this article:
In the case of high-end retailer Tiffany & Co. (TIF - 30-3/8) it is as if yesterday did not exist. After rocketing nearly 23 percent higher in yesterday's action, the equity is now trading back around Tuesday's closing price of 30-3/16. Today's dramatic sell-off can be attributed to an earnings warning and resulting ratings downgrades from three brokerage firms. TIF announced that fourth-quarter earnings should come in at 56 cents per share, which is eight-cents less than Wall Street estimates. <
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by 1/4/2001 1:09 PM
Stocks quoted in this article:
The S&P Retail Index (RLX - 905.3) is trading 1.1percent lower today. In contrast, after yesterday's surprise Fed rate cut, the index busted above its 20-unit monthly moving average for the first time in five months, rallying over seven percent on the day. In July 2000, the RLX moved below this trendline, proving to be in bear mode since the summer. It will be important for the RLX to close above this trendline for January's close to officially be considered back in bull status.

Interestingly enough, the retailing group reacted positively to reports in the last week of December about disappointing Christmas sales. Why this occurred is being attributed to yesterday's rate cut, as it appears the Street was beginning to factor this move into the sector.

Wal-Mart Stores (WMT - 57-1/2), a bellwether in the group, surged past potential call resistance at the 55 and 57-1/2 strike prices. However, it must now contend with the 60 strike, home of over 19,000 calls in the January series. Those that sold these calls to open positions would love to see WMT finish below 60 at January expiration so that they can pocket the premium.
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by 1/4/2001 12:47 PM
Stocks quoted in this article:
The Dow Jones Industrial Average (.INDU - 11,019) is making yet another assault on the 11,000 millenium mark. This level turned back a short-lived rally attempt that ended on November 6th. Yet, there has been further market resistance at this level in the farther past. For example, May 6, 2000 marked a top. Don't forget the failure at 11,000 when the average made its first assault ever at this level. It is also interesting that the .INDU has spent almost a majority of its time in last two years trading in a range between 11,200 and 10.300. This is an extremely narrow range. <
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by 1/4/2001 9:39 AM
Stocks quoted in this article:
Before the opening bell, Bear Stearns (BSC - 53-15/16) reported fourth-quarter results. The brokerage house announced earnings of $1.36 per share, which beat the Street estimate calling for $1.11 per share. BSC added nearly nine percent in yesterday's trading as the shares were pulled higher by the relief rally in brokerage stocks.

BSC used the combined support of its 10-day and 20-day moving averages as a springboard for this rally. From a longer-term technical perspective, the shares have found support in the form of their 20-month moving over the past three months.<
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by 1/4/2001 9:38 AM
Stocks quoted in this article:
Internet business-to-business company Ariba (ARBA - 48-3/4) benefited from the tech rally in yesterday's trading. ARBA added nearly 16 percent on the day after trading down over eight points from Tuesday's close earlier in the session. The shares still were not able to muster a move above their 10-day moving average, which stands overhead at 52. The January 50 put was active in yesterday's trading, seeing over 5,200 contracts change hands. This resulted in an increase in open interest of about 4,000 contracts.
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