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by 10/16/2000 11:18 AM
Stocks quoted in this article:
Qualcomm (QCOM – 74-5/8) has gained over six percent in mid-morning trading following reports that China's second-largest mobile phone company will build a wireless network using QCOM's wireless technology. In response, the security is trading back above its 20-day moving average and is sitting right on its 20-month trendline

In QCOM's options pit this morning, 1,447 and 1,728 contracts have crossed the tape on the out-of-the-money October 75 and 80 calls, respectively. The October 75 call has open interest of 17,980 contracts, while open interest on the October 80 call stands at 14,985 contracts.

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by 10/16/2000 9:21 AM
Stocks quoted in this article:
Chevron (CHV – 84-1/4) has agreed to buy rival oil company Texaco (TX – 55-1/8) for $45.4 billion in stock and assumed debt. In addition, it was announced that TX may need to exit its refining ventures with Royal Dutch Petroleum's (RD – 62-3/4) Shell Oil Company in order to gain clearance of its merger with CHV.

CHV and TX both finished Friday's trading lower by more than three percent. CHV dipped back below its 10-day and 20-day moving averages, while TX moved back beneath its 20-month moving average.

Information from Schaeffer's Daily Sentiment shows that pessimism has been growing toward CHV. On September 19, Schaeffer's put/call open interest ratio (SOIR) on the stock was 0.16, which is significantly less than its current reading of 0.45. As for TX, its SOIR has declined from 0.76 on October 6 to its present 0.55 mark, indicating that optimism toward the shares is on the rise.


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by 10/13/2000 4:10 PM
Stocks quoted in this article:
The S&P Chemicals Index (CEX – 340.43) has not participated in today's broad-market, declining by over nine points, or more than two percent. The index encountered overhead resistance from its 20-day moving average, and it finished in the red for the fourth consecutive session. The CEX was also turned lower this week by its descending 10-week and 20-week moving averages.

Top CEX laggards today were Eastman Chemical (EMN – 35-11/16), down 4.9 percent; Union Carbide (UK – 34-13/16), down 4.7 percent; Rohm & Haas (ROH – 27-13/16), down 3.8 percent; and DuPont (DD – 40-9/16), down 3.2 percent. UK said today that its third-quarter earnings should come in at 20 cents per share, which would easily miss the year-ago figure of 36 cents per share.

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by 10/13/2000 2:05 PM
Stocks quoted in this article:
On Thursday, Veritas Software (VRTS – 136-7/8) tallied third-quarter earnings of 16 cents per share, surpassing brokers' projections by two cents per share. This maker of software for data-storage management also announced that pro-forma fourth-quarter profit and full-year 2000 revenue will be higher than expected because of increasing demand. In response, Lehman Brothers Holdings reiterated its "buy" rating on VRTS this morning.

The stock has soared greater than 14 points, or over 12 percent, higher in mid-afternoon trading, climbing back above its 10-day and 20-day moving averages. The shares also have obtained sturdy support from their uptrending 10-month moving average, which has offered superb support on a monthly closing basis since April 1997.

The VRTS October 135 put has been active today on volume of 3,981 contracts. Open interest on this now out-of-the-money option stands at 3,783 contracts, so most of this activity could result in liquidations.


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by 10/13/2000 12:55 PM
Stocks quoted in this article:
As a follow-up to a Market Byte yesterday, KLA-Tencor (KLAC – 34-7/8) saw some significant option activity yesterday in response to its positive earnings surprise. As a result, open interest on the October 40 put rose from 996 to 6,986 contracts. This was one of the most-active puts on the Pacific Exchange yesterday.

Due to this increase in put open interest, Schaeffer's put/call open interest ratio (SOIR) on KLAC jumped from yesterday's high reading of 1.08 to an annual high of 1.34 today. This pessimism is understandable given that the shares remain 64 percent off their all-time high from early April.

In today's action, investors are still opting for puts, as over 1,000 contracts have traded at the out-of-the-money October 25 strike, which has open interest of just 17 contracts.
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