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by 9/13/2000 12:18 PM
Stocks quoted in this article:
RF Micro Devices (RFMD 36-7/16) is marginally lower in early afternoon trading, as the stock attempts to avoid its fourth straight losing session. The shares are in the midst of a near-term slump, subtracting nearly 23 percent of their value since their August 31 intraday high. RFMD's 10-day and 20-day moving averages are apparently on the verge of a bearish crossover, which can be a further indication of near-term weakness. The equity is also trading back below its 10-week moving average after closing the past three weeks above this intermediate-term trendline.

In RFMD's options pit today, the October 45 put has been active on volume of 5,016 contracts. This in-the-money option has open interest of 221 contracts, which means that almost all of this activity is likely to become new open interest. This is now among the most-active puts on the Pacific Exchange.

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by 9/13/2000 11:27 AM
Stocks quoted in this article:
Watson Pharmaceuticals (WPI 48-5/8) had been cruising along nicely, rallying 110 percent from its mid-May low to an all-time high in Friday's trading. All that came to an abrupt end this week, as the shares declined 6.5 percent yesterday in anticipation of the company's meeting with analysts after the close on Tuesday. At that meeting, company officials revealed that third-quarter earnings will range between three and five cents per share, which falls well below Street forecasts of 48 cents per share. The security has plunged 24 percent so far this morning in reaction to this news.

Yesterday, several put players bet on this negative news, as put open interest increased at several strikes. The September 60, 65, and 75 puts saw open interest increase by 1,200, 1,050, and 750 contracts, respectively. In addition, 500 contracts were added to the October 55 put. This drove WPI's Schaeffer's put/call open interest ratio (SOIR) to an annual high of 1.89.
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by 9/13/2000 11:26 AM
Stocks quoted in this article:
This morning, SCI Systems (SCI 42-3/16) said that its first-quarter earnings will come in at 34 cents per share, below analysts' estimates of 38 cents per share. In response to this news, the stock has plummeted 23 percent. The equity is now trading below all its key short-term and intermediate-term moving averages as well as its 10-month moving average.

Although option trading on SCI is typically moderate, activity has picked up in response to today's news. The in-the-money September 40 call has logged volume of 510 contracts on open interest of just eight contracts, while the October 45 call has seen 369 contracts cross the tape compared to its open interest of only 55 contracts. On the put side, 205 contracts have changed hands at the September 40 strike on open interest of 27 contracts. <
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by 9/13/2000 10:51 AM
Stocks quoted in this article:
GM Hughes Electronics (GMH 34-7/16) declined by almost three percent in Tuesday's trading. The shares are again struggling this morning, as they are down fractionally, but they continue to receive support from their upsloping 10-day moving average. This short-term trendline provided key support during GMH's 47-percent advance from its near-term intraday low on July 31 to its near-term intraday high from Monday.

This morning, 9,017 and 9,000 contracts have traded on the October 35 and January 2002 23-3/8 puts, respectively, in what was labeled a spread transaction. The in-the-money October 35 put has open interest of 2,110 contracts, while open interest on the out-of-the-money January 23-3/8 put stands at a whopping 37,895 contracts. Currently, these are two of the most-active put contracts on the CBOE.


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by 9/12/2000 4:03 PM
Stocks quoted in this article:
Nike (NKE 39-3/8) rallied over seven percent today in anticipation of its earnings report, which is due after the close on Thursday. The company is expected to earn 74 cents per share in its fiscal first quarter.

The put side was active on NKE today. The September 35 put logged volume of 995 contracts. This activity will likely result in new positions since the option has open interest of just 85 contracts. The September 40 put has also seen activity that may result in new positions since 1,510 contracts have changed hands on open interest of 706 contracts.
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