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by 6/23/2000 1:20 PM
Stocks quoted in this article:
Amazon.com (AMZN - 33-1/16) gapped 5-3/8 points lower at the open on news that a fixed-income analyst at Lehman Brothers Holdings (LEH - 90) said that AMZN's debt was "extremely weak and deteriorating." He also advised his clients to avoid the company's convertible securities. The stock is off over 21 percent so far today and is trending at levels not seen since December 1998. Option activity on AMZN has revved up on this news. Put players may be taking profits, as the July 35 and July 40 puts have logged volume of over 2,500 and 3,200 contracts, respectively, compared to open interest of 2,551 and 7,984, respectively. The July 40 put is one of the busiest puts on the CBOE. On the call side, roughly 2,800 and 5,500 contracts have changed hands on the July 35 and 40 calls, respectively. Much of this action could represent new positions since the options have open interest of 160 and 2,487, respectively. The July 40 call is one of the most-active contracts on the AMEX.<
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by 6/23/2000 12:51 PM
Stocks quoted in this article:
Since peaking at 127-1/2 in late March, online auctioneer eBay (EBAY - 51-1/16) has taken a profound tumble lower, relinquishing over 75 percent of its value. Today, the shares are trading more than 12 percent in negative territory and are only about a point away from matching their previous annual low. This morning before the open, brokerage name W.R. Hambrecht downgraded the shares from a "strong buy" to a "buy." The brokerage name said it anticipates a seasonal slowdown for the Internet firm. The covering analyst also cited rich valuation as a reason behind his downgrade. Activity in the EBAY options pits is relatively modest, with call positions seeing the brunt of the action. The most-active EBAY option trading today is the October 70 call, which has seen 1,029 contracts trade hands. Prior to today, this option boasted call open interest of only 226 contracts.
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by 6/23/2000 12:04 PM
Stocks quoted in this article:
Yesterday after the close, Rambus (RMBS - 118-1/4) and Japan's Hitachi (HIT - 139-9/16) settled a lawsuit in which RMBS alleged that HIT had infringed on its patents. HIT agreed to pay a settlement fee as well as royalty payments for RMBS technology. RMBS shares gapped up a whopping 27-3/4 points this morning in response to this news. RMBS has been on fire since June 15 when Toshiba signed a patent liscensing agreement with the company. Since that time, the stock has rocketed 110 percent higher. Not surprisingly, calls are active in RMBS's option pit today. In the front-month series, the 100, 125, and 145 calls have seen volume of approximately 1,200, 1,500, and 1,000 contracts, respectively. In the August series, 1,100 contracts have traded on the 125 call.<
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by 6/23/2000 11:38 AM
Stocks quoted in this article:
Technology stocks have grudgingly moved off their lows today amid a seemingly tentative mood among traders today. The S&P 500 Index (SPX - 1455.74) is up 0.25 percent. Currently on the NYSE, 1,202 advancing issues are lagging 1,320 declining issues, while 551 issues are unchanged. Up volume of 182 million shares is ahead of down volume of 151 million shares on total volume of 345 million shares. The 12 new highs are being trounced by the 31 new lows. The Nasdaq Composite (COMP - 3923.4) is lower by 0.34 percent. Advancing Nasdaq issues of 1,546 are far behind 1,859 declining issues, while 624 issues are unchanged. Up volume of 231 million shares is well behind down volume of 324 million shares. The 21 new highs are substantially lagging the 49 new lows. <
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by 6/23/2000 11:22 AM
Stocks quoted in this article:
Following up to a recently posted Market Observation, Nabisco Group Holdings (NGH - 25-1/4) suitor Philip Morris (MO - 23-3/16) also saw notable option activity during Thursday's session. The heaviest site of speculator activity was the July 25 call, where nearly 5,000 contracts changed hands. A major contributor to this volume was a block of 2,500 call contracts that traded off the ask price shortly before 10:30 a.m. This boosted open interest at this front-month strike from around 8,807 contracts to almost 12,000 contracts. Additionally, 2,000 contracts traded at both the January 30 and 35 call strikes during yesterday's activity. On the put side, over 1,100 contracts crossed the tape on the in-the-money December 25 put. Option activity on MO is relatively anemic today, with the shares trading fractionally higher.
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