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by 11/16/2000 1:13 PM
Stocks quoted in this article:
Although, nine days after the election, the two major Presidential candidates continue their legal wrangling, it appears the AMEX Morgan Stanley Healthcare Payors Index (HMO – 448.79) is declaring George W. Bush the victor. Since Election Day, the HMO has appreciated over 12 percent, only ending the day in the red once. Today, the HMO has tacked on another 1.5 percent, amid general weakness in the broader market.
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by 11/16/2000 1:08 PM
Stocks quoted in this article:
This morning, a major brokerage house downgraded the shares of several communication chipmakers. Vitesse (VTSS- 69-5/8) was cut to accumulate from "strong buy." The stock gapped down 6-1/2 dollars at the open, but has since mounted an admirable comeback. In mid-morning trading, the shares moved into positive territory eventually reaching as high as 72-7/8. Despite the tech carnage in 2000, VTSS has increased over 32 percent year-to-date. In addition, from a long-term technical perspective, the stock has been able to consistently close above its 20-month moving average every month since mid-1993.<
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by 11/16/2000 1:01 PM
Stocks quoted in this article:
Smith International (SII – 71-5/8) provides materials and services to oil drilling companies. Its shares increased in value over 10 percent between Tuesday's and Wednesday's trading. Yesterday, the stock was able to close above its descending 20-day moving average for the first time in over a month. This trendline has guided SII lower recently after the security encountered resistance in the 87-88 range. This level has acted as resistance for SII on three occasions dating back to October 1997. Although activity on most SII options is light, today the December 75 call and the December 70 put have each had large blocks of 1,000 contracts cross the tape.<
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by 11/16/2000 12:11 PM
Stocks quoted in this article:
Apparel giant Limited (LTD – 25-15/16) announced third-quarter earnings before the open this morning. The company reported figures of 11 cents per share, matching the consensus estimate and topping year-ago numbers by two cents per share. The company also reported that same-store sales for the quarter rose eight percent. Looking forward, LTD officials said they feel confident of achieving analysts' estimates for the fourth quarter.

LTD has not had much of a reaction to this news, as it has hovered around breakeven for most of the day. Yesterday, the equity found support at its ascending 20-day moving average. Options activity is beyond anemic today, with only five contracts trading in total.
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by 11/16/2000 10:17 AM
Stocks quoted in this article:
Yesterday after the market closed, it was announced that Starwood Hotels (HOT- 34-15/16) would replace Armstrong Holdings (ACK - 1-1/8) in the S&P 500 Index (SPX - 1387.83) at the close of trading tonight. HOT, which owns 725 hotels in 80 countries, has traded in the range of 19-3/4 to 35-9/16 over the last 52 weeks. There has been explosive pressure on the stock price this morning because the announcement was made so close to the inclusion time and only about 800,000 shares of this issue trade on an average day. Typically in this type of situation, speculators bid up the price to gap up at the open, knowing that fund managers who track this index must purchase the stock. The fund managers then wait until the end of the day to approximate the closing price for their purchases. Options players are also picking up the pace. The November 35 call has seen over 1,000 contracts trade already this morning.
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