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by 1/29/2001 9:10 AM
Stocks quoted in this article:
Last Friday, the S&P Retail Index (RLX - 880.4) was able to manage its highest weekly close since late July. On Wednesday, the RLX will seek to make its first monthly close above its 20-month moving average since May. In the short term, potential resistance looms overhead in the form of the round-number 900 level. This area has acted as resistance for the index on numerous occasions over the past year and a half. <
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by 1/29/2001 9:08 AM
Stocks quoted in this article:
Freddie Mac (FRE - 62.00) shares had a fine showing in the last four months of 2000, as frazzled investors charged into FRE as a safe haven. From its intraday low of 40.62 on September 5, the stock added nearly 70 percent in value through the end of the year.

2001 has been a different story so far. The stock slipped below its overhead 20-day moving average on January 3, and has subsequently found resistance at this trendline. FRE has not been able to manage a daily close above its 20-day moving average.

On Friday, the July 65 call on FRE was active. Just over 7,000 contracts changed hands on the option with virtually all of the activity translating into new open interest. <
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by 1/29/2001 9:05 AM
Stocks quoted in this article:
Read Rite (RDRT - 9-1/2) is one of the world's leading independent manufacturers of disk drive components. In 2001 RDRT shares have trended higher along their 10-day moving average en route to a 130-percent gain. In last Friday's trading, it appears that an institutional player rolled out an RDRT call position from the front-month to the back-month. The February 7-1/2 call and March 10 calls each saw volume of just over 5,000 contracts. In response, open interest on the February 7-1/2 call declined by over 3,000 contracts. In contrast, nearly all of the volume on the March 10 call translated into new open interest. <
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by 1/26/2001 3:06 PM
Stocks quoted in this article:
This morning's announcement by Ericsson (ERICY – 11-1/8) that they will transfer production of their handsets to Flextronics (FLEX – 38-1/4) has not had the impact on FLEX shares that one might expect. This is a great opportunity for FLEX, but they also announced that they would offer 25-million additional shares in order to fund the enterprise. So the boost in share price may be longer term rather than immediate.

A whopping 3,280 contracts of the FLEX February 37-1/2 call have changed hands today. There were five block trades of 400-500 shares each that traded alternatively at the bid, ask, and in-between the two prices.

Today's alliance again highlights the group of companies that produce electronic manufacturing services (EMS) for original equipment manufacturers (OEMs). Others in the group have stated that, although sales have slipped in the computer and telecommunications groups they manufacture for, they are being turned to increasingly for outsourcing. It is estimated that presently about 13-percent of electronics products are actually made by these contract manufacturers. That figure is expected to double by 2004.

Other companies in this space include Sanmina (SANM – 49-1/8), Jabil Circuit (JBL – 36-1/2), Celestica (CLS – 66-9/16), Solectron (SLR – 39.17), and SCI Systems (SCI – 27-3/16). Most of these companies have experienced a huge rally in their share prices this month. Today, SANM announced its offer to purchase a Swedish electronics producer.
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by 1/26/2001 2:58 PM
Stocks quoted in this article:
Well, this is one for the annals. After releasing fourth-quarter earnings that exceeded Wall Street estimates by a penny per share, consumer products giant Gillette (G - 3-3/16) announced that they will no longer be providing the investment community with guidance on quarterly net earnings and specific operations. According the firm, "the board decided the focus should be on the long-term performance of the company, as opposed to quarter by quarter."

One wonders if today's news will have any material affect on how brokerage firms track G's performance. According to Zacks, there are currently 15 firms following G). In any case, the stock has not reacted well in today's trading, as G turned lower after hitting resistance at the site of its descending 20-day moving average. Currently, the equity is off 1.49 percent on the day. <
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