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

by 10/31/2000 1:46 PM
Stocks quoted in this article:
Rambus (RMBS – 47-11/16) is in the semiconductor industry, manufacturing a dynamic random-access memory (DRAM) technology that expedites the transfer of electronic information between a computer's memory and its logic chips. The company's products are also utilized in video-game and home-electronic technologies.

This morning, RMBS shares gapped 9-15/16 points, or 18 percent, lower at the open and eventually sank as much as 32 percent to 36-1/2. The equity has pared the bulk of its losses in subsequent trading but remains nearly 11 percent in the red.

This recession was spurred by news that semiconductor behemoth Intel (INTC – 46-5/8) plans to eliminate RMBS's technology from most of its workstations by the middle of next year. The stock is poised to end October below its 10-month moving average for the first time since January. Furthermore, the equity inched below its 20-month trendline earlier today before pushing back above this long-term trendline. <
permalink


by 10/31/2000 12:37 PM
Stocks quoted in this article:
EMC Corp. (EMC – 88-1/8) is in positive territory by almost four points, or over four percent, this afternoon, but it remains below its 10-day and 20-day moving averages. The equity has retreated by more than 17 percent since recording an all-time intraday high of 104-15/16 on September 25. The shares are trading beneath their 20-week moving average, but they continue to obtain support from their 10-month trendline.

On the options front today, 1,373 contracts have traded on the out-of-the-money November 100 call, which has open interest of 9,139 contracts. In addition, the April 90 call has seen volume of 4,050 contracts. Open interest at this out-of-the-money strike stands at 1,465 contracts, indicating that some of today's volume should become new positions. This is currently one of the most-active options on the AMEX.

On the put side, 1,054 contracts have traded on the out-of-the-money December 75 put, which has open interest of 939 contracts.

<
permalink


by 10/31/2000 12:18 PM
Stocks quoted in this article:
In Monday's trading, Southwest Airlines (LUV – 28-1/16) moved ahead by nearly seven percent to log an all-time intraday high. From a near-term intraday low on September 19 to yesterday's all-time intraday best, the shares ascended by more than 33 percent, climbing above all of their significant moving averages. In today's action, though, the stock has peeled off almost one point, or over two percent.

In LUV's options pit in the early afternoon, 3,511 contracts have crossed the tape on the December 27-1/2 call. This in-the-money option has open interest of 2,770 contracts. This is now among the most-active calls on the CBOE.

<
permalink


by 10/31/2000 10:19 AM
Stocks quoted in this article:
Beverage giant PepsiCo (PEP – 47-1/2) operates worldwide soft-drink, juice, and snack food businesses such as Doritos tortilla chips and Lay's potato chips. PEP also owns the international rights to the Seven-Up brand. PEP can now add SoBe products to its list of offspring as it has apparently reached an agreement to buy the product line for $370 million. PEP edged Coca-Cola (KO – 59-1/2) for the drinks manufactured by the South Beach Beverage co. Both KO and PEP do not market such new-age drinks that are becoming very popular among the more health-conscious consumer.

PEP received more good news this morning when the FDA approved advertising claims that potassium cuts stroke risk and high blood pressure. PEP's Tropicana orange juice division has already made plans to start marketing the slogan as soon as Wednesday and have it posted on containers within a month. All this good news comes at the perfect time for the stock, as yesterday it soared to a new all-time high of 49-1/4. The stock has been trending in a sound upward channel, finding near-term support at its 20-day moving average.<
permalink


by 10/31/2000 9:55 AM
Stocks quoted in this article:
With today being the last day of the month, the S&P 500 Index (SPX – 1407.16), Nasdaq Composite (COMP – 3242.2), and Dow Jones Industrial Average (INDU – 10,859.3) all entered this morning's trading sitting close to their respective 20-month moving averages.

The SPX's 20-month trendline is now perched at 1390, just eight points below yesterday's close. The COMP remains beneath its 20-month moving average, which is currently resting at 3400. The technology-laden barometer last finished a month below its 20-month trendline in August 1998. AS for the Dow, it has overtaken its 20-month trendline this morning, as the long-term moving average is at about 10,835.

We view the 20-month moving average as the line of demarcation between bull and bear markets.

<
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.