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

by 2/5/2001 5:15 PM
Stocks quoted in this article:
Dillards (DDS – 17.99) received a healthy boost, jumping more than 17 percent today after being upgraded by two different brokerage firms from "neutral" to "buy." The stock gapped significantly higher today on heavy volume as the stock trades at levels not seen in nearly a year. The shares have also broken above their 20-month moving average for the first time since June 1999. It will be interesting to watch and see if the stock can hold onto these gains until the end of the month. <
permalink

by 2/5/2001 5:14 PM
Stocks quoted in this article:
Eastman Chemical (EMN – 48.34) announced today their intention to split into two separate companies. The world's largest supplier of plastic packaging, EMN plans to split its packaging unit from its specialty chemical unit. Based on 2000 fiscal year sales, the two companies look to be evenly split, with chemical sales coming in at 2.5 billion and polymer sales at 2.8 billion. To further bolster chemicals, EMN looks to conclude the acquisition of Hercules (HPC – 14.01), a hydrocarbon resin company, by the close of the first quarter.
permalink

by 2/5/2001 4:59 PM
Stocks quoted in this article:
Cisco Systems (CSCO - 34-9/16) will be reporting earnings tomorrow. The most active option in the February series was the February 35 call today, with volume of over 28,000. Open interest heading into today was 44,329 at this strike.

This option was surprisingly cheap, perhaps they were selling options? The implied volatility of this option closed at 98 percent, compared to the stock's 10-day historical volatility of 154 percent.

Meanwhile, there is a signifant skew in implied volatilities in the out-of-the-money speculative strikes. The February 40 call closed at an implied volatility of 90 percent, while the out-of-the-money February 35 put was much more expensive at 118 percent. <
permalink


by 2/5/2001 4:42 PM
Stocks quoted in this article:
Cirrus Logic (CRUS – 24-15/16) manufactures specialized microchip technology. Some of the firm's customers include Apple Computer, Sony, and Nokia. The stock has been in decline mode for the past two weeks, losing 30 percent from its January 19 peak. Today, the shares lost nearly six percent without any news to account for the decline.

CRUS options pits saw some unusual activity transpire today. More than 5,000 contracts changed hands on the September 20 put, which was previously home to only six contracts. This was one of the most-active put options on the CBOE today. One block of 2,000 contracts traded just before 11:00 a.m., going off near the bid price. A number of other mid-sized blocks crossed the tape throughout the session. Meanwhile on the call side, 3,565 contracts were transacted on the June 45 call. Open interest at this far-out-of-the-money strike stood at 3,788 prior to today's trading. <
permalink


by 2/5/2001 4:31 PM
Stocks quoted in this article:
This afternoon, Pfizer (PFE - 45.75) reported that it had received FDA approval to market Zeldox for schizophrenia. This announcement comes after years of trying to get the drug to market.

Option activity was brisk on PFE today. For example, the February 45 was extremely active, with over 5,000 contracts trading. Open interest heading into today's trading was 9,758 contracts.

PFE close up 0.85 on the day, or 1.89 percent. The shares are trading at 46 once again, a level that has turned the shares back several times since June 2000.
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 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.