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

by 10/19/2000 10:50 AM
Stocks quoted in this article:
MP3.com (MPPP – 5-7/16) manages a website that uses MP3 technology to offer consumers free access to music by over 67,000 artists. The company also sells compilation CDs on its site. As a result of legal woes and a general weakness throughout the Internet sector, MPPP shares are trading nearly 95 percent below their peak of 105 that was achieved in July 1999, shortly after the company went public.

Yesterday and today, however, MPPP shares have been clamoring higher, rising 45 percent yesterday and 54 percent so far today. This rally was catalyzed by news that MPPP has signed a licensing agreement with the National Music Publishers Association. This agreement allows MPPP to work with all record labels in one fell swoop, unlike previous deals MPPP has arranged. Under the tentative contract, MPPP pays $30 million to music publishers in exchange for the use of over one million songs previously copyrighted by various songwriters. MPPP has now moved above its 10-day and 20-day moving averages for the first time in nearly two months.
permalink


by 10/19/2000 10:06 AM
Stocks quoted in this article:
Apple Computer (AAPL – 18-7/16) has been inflicted with some unwelcome worms of late, as the shares are trading 75 percent lower than their annual high reached in late March. On September 29, the equity crumbled a whopping 51 percent lower after saying that its fourth-quarter earnings would likely land in the range between 30 and 33 cents per share. Wall Street had been expecting the company to earn 45 cents per share. Last night, the company reported its fourth-quarter figures, which came in at the bottom end of this range at 30 cents per share. This missed revised analysts' estimates of 31 cents per share. What's more, AAPL officials revised fiscal year 2001 revenue targets slightly lower to $7.5 to $8 billion.

AAPL gapped moderately lower on this news and is currently trading more than eight percent in the red, recording a new 18-month low at 18-5/16. Option activity on AAPL is muted today, although yesterday more than 1,000 contracts traded on a number of put options in the January series.
permalink


by 10/19/2000 9:25 AM
Stocks quoted in this article:
United Parcel Service (UPS – 53-1/16) is the largest package-delivery company in the world. The company delivers approximately 13 million packages a day throughout over 200 countries. Formerly one of the largest privately-held companies in the United States, UPS debuted on the NYSE last November. The shares have subsequently lost around 24 percent of their value since opening day.

This morning, UPS officials announced third-quarter earnings of 60 cents per share, topping Wall Street's consensus estimate by two cents per share and surpassing last year's numbers by 15 percent. Additionally, the firm said it feels "confident" about its upcoming fourth quarter.

UPS saw some put activity yesterday, as over 1,300 contracts were added at the October 85 strike. This is unusual, as this put option expires at tomorrow's close. It appears as though speculators were looking to capitalize on a quick decline in the shares within the next two sessions. Yesterday, the equity gapped nearly four percent lower on heavy volume. <
permalink


by 10/19/2000 9:25 AM
Stocks quoted in this article:
Sears (S – 33.20) is a top U.S. retailer, with about 850 mall-based stores. Additionally, the firm owns and operates 1,400 specialty stores including hardware and automotive-supply franchises. This morning, the company announced third-quarter earnings of 81 cents per share, topping year-ago numbers by roughly 17 percent. S's earnings also topped analysts' estimates by a penny per share.

Since early June, S shares have been oscillating sideways in a range between the 30 and 37 levels. This sideways pattern has rendered the equity's moving averages fairly worthless for spotting trends.

Option activity is not overwhelming on the security, as the site of heaviest open interest is the January 40 call, which is home to 2,844 contracts. The heaviest site of put open interest is the out-of-the-money January 30 strike, where 2,261 contracts reside.
permalink


by 10/19/2000 9:20 AM
Stocks quoted in this article:
Conexant Systems (CNXT – 26-5/16) announced late yesterday that it expects revenue to fall as much as seven percent in the current quarter from the three months ended September 30. In addition, this maker of computer chips for communications equipment posted fourth-quarter earnings that met Street estimates of 18 cents per share on Wednesday.

This morning, CNXT was downgraded to "buy" from "strong buy" by a brokerage house. The stock is poised to gap more than two points, or over eight percent, lower at today's opening bell.

In yesterday's trading, the shares slipped greater than seven points, or nearly 22 percent, in the red to reach to its lowest level since mid-June 1999. Since logging a near-term intraday high on September 14, CNXT has conceded 52 percent, prompting a bearish crossover of its 10-day and 20-day moving averages. The security is also below all of its key intermediate-term and long-term trendlines.


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.