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

by 10/11/2000 11:10 AM
Stocks quoted in this article:
Rare Hospitality International (RARE – 23-1/8) owns, operates, and franchises restaurants under the names LongHorn Steakhouse, Bugaboo Creek Steak House, and The Capital Grille. On Tuesday, the company said that it expects to report third-quarter earnings of 25 cents per share, which would exceed Street forecasts by five cents per share. This morning, RARE was rated a "strong buy" in new coverage by a brokerage firm.

In reaction to these developments, the shares are presently ahead by over three points, or greater than 15 percent. This upswing has the equity ready to finish today's session at its highest closing mark since May 18. In addition, RARE has reclaimed both its uptrending 10-day and 20-day moving averages as well as its 10-week trendline.

Despite today's new coverage, information from Multex shows that there are only eight analysts now with ratings on the security. Any additional new positive coverage could give this outperformer a boost over the short term.


by 10/11/2000 11:06 AM
Stocks quoted in this article:
One of the top indices this morning is the AMEX Oil Index (XOI – 554.19), which is on positive ground by over 10 points. Today's upward momentum is partially because of rising oil prices. This ascent has the XOI poised to record an all-time closing high, surpassing its previous standard of 550.93 from September 18. The index's 10-day and 20-day moving averages recently completed a bullish crossover, which can be an indication of near-term strength.

Stocks propelling the XOI higher today include Sunoco (SUN – 28-15/16), up 3.5 percent; BP Amoco (BP – 55-15/16), up 3.1 percent; Unocal (UCL – 37-1/8), up 2.7 percent; Phillips Petroleum (P – 65-3/4), up 2.3 percent; Royal Dutch Petroleum (RD – 64-1/4), up 2.3 percent; and Occidental Petroleum (OXY – 21-15/16), up two percent. UCL was started at an "outperform" rating this morning by Salomon Smith Barney.


by 10/11/2000 10:38 AM
Stocks quoted in this article:
Last night after the close, Seagate Technology (SEG – 63-1/2) revealed pro forma earnings for the first quarter of 26 cents per share, topping Street forecasts by five cents per share. The equity was up over four percent in early trading in reaction to this positive earnings surprise before giving way to the broad selling pressure. The shares are holding on to a fractional gain in mid-morning trading. The stock has been strengthening of late, gaining 45 percent since its late-July lows.

Options players were taking skeptical bets ahead of the company's earnings report. Yesterday, put open interest increased by over 1,500 contracts at the November 50 strike. On the call side, SEG faces heavy overhead call open interest, which could serve as options-related resistance to any rally attempts. In the October series alone, out-of-the-money call open interest amounts to over 11,500 contracts. <

by 10/11/2000 10:37 AM
Stocks quoted in this article:
This morning, General Electric (GE – 56-1/2) reported third-quarter earnings that were in line with analysts' estimates of 32 cents per share. This was not enough to save the stock from today's broad downdraft, as GE is down over two percent in early trading.

The stock has been stuck in a short-term trading range capped at the 60 strike, which is home to over 22,000 October call contracts.

In advance of GE's earnings report, options players were adding puts yesterday. Open interest on the November 55 put increased from 7,551 contracts to 11,274 contracts. This heavy put open interest may work with the 28,024 contracts on the October 55 put to provide options-related support for the shares.

by 10/11/2000 10:28 AM
Stocks quoted in this article:
Elegant department-store name Nordstrom (JWN – 14-15/16) has not had a banner year, despite its upscale image. Since its mid-April peak and annual high of 34-1/2, the stock has eroded nearly 60 percent, sinking below all of its significant moving averages in the process. The stock is now perched at levels not seen since the summer of 1993.

Today, JWN has relinquished almost five percent on a third-quarter earnings warning. Before the open, the retailer said that lower-than-expected sales performance will result in earnings of between 19 and 20 cents per share. The consensus estimate on Wall Street was for the company to earn 24 cents per share. Although contributing to this shortfall, according to JWN officials, will be $43 million in various charges and increased expenses. JWN is expected to report earnings in mid-November.

Featured Brokers
Unusual Option Volume
Option Flow
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:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.