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by 11/16/2000 10:17 AM
Stocks quoted in this article:
Yesterday after the market closed, it was announced that Starwood Hotels (HOT- 34-15/16) would replace Armstrong Holdings (ACK - 1-1/8) in the S&P 500 Index (SPX - 1387.83) at the close of trading tonight. HOT, which owns 725 hotels in 80 countries, has traded in the range of 19-3/4 to 35-9/16 over the last 52 weeks. There has been explosive pressure on the stock price this morning because the announcement was made so close to the inclusion time and only about 800,000 shares of this issue trade on an average day. Typically in this type of situation, speculators bid up the price to gap up at the open, knowing that fund managers who track this index must purchase the stock. The fund managers then wait until the end of the day to approximate the closing price for their purchases. Options players are also picking up the pace. The November 35 call has seen over 1,000 contracts trade already this morning.
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by 11/16/2000 8:39 AM
Stocks quoted in this article:
This morning, the Labor Department released the September Consumer Price Index (CPI) results. Overall, consumer prices rose by 0.2 percent, down significantly from the 0.5-percent advance in September. The results were in line with Wall Street expectations.

The core index, which excludes the volatile food and energy sectors, also matched estimates with an advance of 0.2 percent. This morning's news did not help the broader markets, which already looked to open lower. Currently, the December S&P 500 Index futures contract (SP/Z0 – 1391.50) is off by six points.
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by 11/15/2000 3:16 PM
Stocks quoted in this article:
In a notable example of the "priced-to-perfection" syndrome, Network Appliance (NTAP – 74-1/2) is feeling the wrath of investors today, even though last evening's release of quarterly results was positive. They beat Street expectations by a penny, showing earnings of 10 cents per share. But their expectations of growth for future quarters slowed to the 10-15 percent range. Now the shares are being severely punished, down 22 percent this afternoon. Bear Stearns has just cut its rating from "buy" to "attractive." Network Appliance is a member of the computer storage group, which has recently been a darling of Wall Street.
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by 11/15/2000 3:14 PM
Stocks quoted in this article:
Investors interested in smaller-capital medical stocks may want to note yesterday's breakout action in Eclypsis (ECLP – 27-7/16). This infotech supplier for managed care health companies had been consolidating in the low 20s for the past two weeks until it exploded yesterday to a high of 27-1/4. This afternoon it is continuing on even higher. Positive third-quarter results released on November 9 showed a 30-percent increase in sales bookings and a sooner-than-expected return to operational profitability. The catalyst for yesterday's move may have been the announcement of a marketing partnership with Sentillon. Options are available on ECLP, but not widely traded. In fact, only 42 calls have traded today. <
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by 11/15/2000 3:13 PM
Stocks quoted in this article:
Following up from a recent "byte" noting positive stock movement in Anheuser-Busch (BUD – 45-15/16), BUD has announced a major new product. Forthcoming the first of 2001 will be a new non-alcoholic beverage called "180." It will be a high energy, vitamin fortified orange flavored drink. The new product launch will be accompanied by a multi-million dollar advertising campaign, especially targeted to higher end customers and health clubs.

Today BUD received downgrades from three analysts, solely on valuation concerns. Although the stock is trading down three percent, it has held the support of its 10-day moving average.
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