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

by 6/12/2000 11:54 AM
Stocks quoted in this article:
Over the past two-and-a-half months, consumer-products issue Clorox (CLX - 41-7/16) has rallied nearly 40 percent along its ascending 10-day and 20-day moving averages. The stock has now run into a potential ceiling of resistance, though, at its 10-month moving average. This long-term trendline has thwarted all but one monthly close by the shares since May 1999. In late-morning trading, CLX boasts the most-active put on the PHLX, as over 2,600 contracts have changed hands on the October 40 put. A number of blocks ranging in size from 25 to 930 contracts have been trading throughout the morning. These have all gone off at or near the bid price, suggesting that they might be liquidations. Optimism is high on CLX, nevertheless, from a sentiment point of view. Schaeffer's put/call open interest ratio (SOIR) on CLX weighs in at 0.38, ranking in the 11th percentile of all annual SOIR readings. The combination of this bullishness with potential overhead resistance is a short-term concern in our contrarian view. For more information on SOIR, please visit Schaeffer’s Daily Sentiment.<
permalink

by 6/12/2000 11:41 AM
Stocks quoted in this article:
Drug-delivery systems maker Alkermes (ALKS - 41-3/8) announced that Johnson & Johnson (JNJ - 86) ended its involvement in co-developing a new version of the anemia drug erythropoietin. From its May 26 intraday low to Friday’s close, ALKS gained 89 percent. In response to today’s news, though, the stock has plummeted beneath its 10-day moving average, which it hasn’t closed below this month. The equity is also underneath its 20-week trendline. The shares are currently lower by over 12 points, or greater than 23 percent. The in-the-money June 40 call on ALKS has been active this morning on volume of 608 contracts. Most of this activity should translate to new positions, as open interest on the June 40 call stands at 135 contacts. It also appears that investors have rolled out the deep-out-of-the-money August 27-1/2 put to the November 27-1/2 put, as both options have seen volume of more than 480 contracts. The August 27-1/2 put has open interest of 533 contracts, while open interest on the November 27-1/2 put is at 77 contracts.<
permalink

by 6/12/2000 11:40 AM
Stocks quoted in this article:
Chase Manhattan (CMB - 49-1/16) is up fractionally this morning, but the equity has encountered overhead resistance at its 20-day moving average. Since its intraday high on June 2, the shares have lost nearly 11 percent of their value. CMB is also trading below all of its significant intermediate-term and long-term moving averages. On the options front today, both calls and puts are receiving attention in CMB’s pit. The out-of-the-money June 50 call has seen 750 contracts executed. This option has no open interest, so all of today’s volume should become new positions. In addition, 1,010 put contracts have traded at the out-of-the-money July 46-5/8 strike, which also has no open interest.<
permalink

by 6/12/2000 11:34 AM
Stocks quoted in this article:
A pair of front-month puts on General Electric (GE - 49-3/16) are active in early trading today. The June 48-3/8 put and June 50 put have each seen over 5,700 contracts cross the tape so far today. The activity appears to be related, potentially the two legs of a large spread position. It is difficult to determine the intentions of the trader because the majority of the activity went off at or near the bid price on both options. These options are currently the two most-active equity puts on the CBOE. GE shares continue to weaken and are trading fractionally lower today. However, long-term support in the form of the 10-month moving average resides just below at 47-1/2. GE has only closed below its 10-month trendline twice since November 1994.<
permalink

by 6/12/2000 11:20 AM
Stocks quoted in this article:
Paper company Weyerhaeuser (WY - 46-1/4) owns nearly six million acres of timber land in the Pacific Northwest. This morning, company officials announced the completion of a previously launched 12-million share buyback program. Additionally, WY announced plans to repurchase 10 million additional shares. The company currently has 233 million shares outstanding. The Street is visibly not impressed by this fundamental news, as WY is trading three percent lower in late-morning trading. The stock also hit a new 18-month low of 45-11/16 this morning. <
permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
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.