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by 6/20/2000 4:20 PM
Stocks quoted in this article:
Consumer concern Bristol-Myers Squibb (BMY - 53-1/8) finished today’s trading in the red more than three percent, closing just beneath its 10-day moving average as well as its 20-day trendline. The shares are also sitting barely below their descending 10-week moving average. In BMY’s options pit today, 5,004 call contracts crossed the tape at the January 55 strike. This out-of-the-money option has open interest of 2,055 contracts, so some of this afternoon’s volume should translate to new open interest. The option concluded the session as one of the most-active put contracts on the CBOE.<
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by 6/20/2000 3:50 PM
Stocks quoted in this article:
Enron (ENE - 71-5/8) conducts business in electricity, natural gas, and communications. Following a stellar run-up from the end of 1999 through mid-February, the shares have entered a period of consolidation. Despite the lack of a trend, the stock still maintains an almost 19-percent gap above its 10-month moving average. Option activity has been brisk today, as 6,464 call positions have already traded versus just 386 put positions. Upon closer examination, we find that 6,127 contracts are concentrated on the out-of-the-money August 75 call compared to open interest of just 44 contracts, indicating new positions will be established at this strike. ENE is currently up nearly one percent in late-afternoon trading after trending in negative territory most of the session.<
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by 6/20/2000 3:00 PM
Stocks quoted in this article:
Broadcom (BRCM - 169-3/4) is seeing heavy option activity on the July 200 call, with 1,793 contracts trading today versus open interest of 1,182 contracts. BRCM will be replacing GTE (GTE - 69-5/8) in the S&P 500 Index (SPX - 1473.93). Thus, index mutual funds that attempt to mirror the SPX will have to purchase the shares. The stock is up over 15 percent on volume of 7.2 million shares today versus its 30-day average volume of 4.5 million shares. Today's volume amounts to 6.5 percent of the float, or shares in public hands. BRCM options are pricing in this new wave of buying pressure with the July 130 put asked at 4 and the July 210 call asked at 6-5/8. Comparing the prices of these roughly equidistant out-of-the-money options is one way of examining the relative demand for puts versus calls.
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by 6/20/2000 2:38 PM
Stocks quoted in this article:
Apparel retailer Gap Inc. (GPS - 30-1/16) has been confined to a downward spiral for the past 2-1/2 months. Since encountering double-top resistance in the 52 area in early April, the shares have tumbled around 40 percent. Today was a rough time in the trenches for the parent of Old Navy and Banana Republic, as GPS has reached a new annual low of 29-3/4. This continued decline was fueled by a brokerage downgrade; an analyst at Bank of America (BAC - 48-1/8) reduced his rating on GPS from a “strong buy” to a “buy” earlier today. The most-active GPS option trading today is the January 50 call, which has seen 400 contracts cross the tape. Heading into today’s session, this strike was home to only 164 open call contracts. This suggests that at least the majority of today’s call volume consists of new positions.
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by 6/20/2000 2:30 PM
Stocks quoted in this article:
There has been only modest follow-through today after yesterday's broad-market rally. The S&P 500 Index (SPX - 1477.70) is lower by 0.56 percent. Currently on the NYSE, 1,134 advancing issues are being trounced by 1,670 declining issues, while 520 issues are unchanged. Up volume of 291,295,820 shares is far behind down volume of 386,936,570 shares. However, new highs are exceeding new lows, 61 to 50. The Nasdaq Composite (COMP - 4026.8) is ahead by 0.93 percent. Advancing Nasdaq issues of 1,804 are lagging 2,079 declining issues, while 637 issues are unchanged. Up volume of 689,024,900 shares is beating down volume of 458,951,800 shares. New lows own a 69-to-65 lead over new highs.
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