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

by 9/19/2000 10:48 AM
Stocks quoted in this article:
After a 34-percent run from its late-July lows to its early-September all-time high, Halliburton (HAL 50-9/16) has pulled back to test its 10-week moving average.

It appears that a possible strangle has been initiated using the October 55 call and the October 50 put. Both options have seen over 3,000 contracts cross the tape this morning in large block transactions. A strangle involves either the purchase or sale of the equivalent number of call and put options with the same expiration but different strikes. Both of these contracts are among the most active on the CBOE. <
permalink


by 9/19/2000 10:47 AM
Stocks quoted in this article:
This morning, FedEx Corp. (FDX 38.29) reported fiscal first-quarter earnings of 58 cents per share, four cents ahead of expectations. The company said that "fuel remains a concern." Higher fuel prices pushed fuel costs up $55 million compared to the prior-year period.

The stock is having a subdued response to this news and is currently down fractionally. The shares have been mired in a long-term trading range between 33 and 47 since early August 1999.

Perhaps behind the muted response to the company's positive earnings surprise is overly high expectations. Schaeffer's put/call open interest ratio (SOIR) on FDX is showing high levels of optimism with a low reading of 0.32. This means that call open interest outweighs put open interest by a margin of over three to one for options expiring within the next three months. For more information on SOIR, please visit Schaeffer's Daily Sentiment. <
permalink


by 9/19/2000 10:05 AM
Stocks quoted in this article:
This morning, online bookseller barnesandnoble.com (BNBN 6-1/16) announced that it will be the primary bookseller for Yahoo!'s (YHOO 107) online service. YHOO also said that it will develop an Internet service for Barnes & Noble (BKS 19-7/8) customers.

BNBN investors have shown their approval of today's news, as the stock has raced nearly 33 percent higher so far this morning. This advance has carried the shares to their top intraday mark since July 24 and above their 10-day and 20-day moving averages. However, the security has yet to overcome its 20-week moving average, a trendline BNBN hasn't finished a week bove since late November.

<
permalink


by 9/19/2000 10:02 AM
Stocks quoted in this article:
Papa John's International (PZZA 22-3/8) operates around 2,400 restaurants nationally, making it the third-largest pizza chain in America. Last night, PZZA officials said that 2001 earnings should come in between $2.40 and $2.50 per share, below the First Call consensus estimate of $2.57. Additionally, the firm announced plans to open between 340 and 360 new locations next year. Same-store sales for 2001 should inch up one to three percent.

PZZA has been in a downward trend since mid-March, sloughing off 35 percent since a short-term peak reached on March 16. Despite last night's announcement, the shares are unchanged in early morning trading. <
permalink


by 9/19/2000 10:02 AM
Stocks quoted in this article:
Minnesota Mining & Manufacturing (MMM 84-3/8) is responsible for the creation of Post-It notes, Scotch tape, and other well-known consumer products. The company also has divisions in the health care, transportation, and communications industries. In all, the firm manufactures 50,000 different products. This morning, the company announced the positive news that a Texas jury has found MMM not liable in the latest case against defective breast implants. MMM has logged a 1.5-percent gain shortly after the open.

Technically, MMM has been floundering of late, falling 15 percent in the last three weeks. In late August, MMM encountered short-term resistance just above the 97 mark. The shares are now sitting below all of their significant short-term and long-term moving averages. <
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 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.