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

by 11/13/2000 12:07 PM
Stocks quoted in this article:
Shares of Internet incubator CMGI Inc. (CMGI – 14-1/2) have been under renewed selling pressure after it was announced last week that Internet Capital Group (ICGE – 9-9/16) announced a major restructuring. CMGI shares are now down about 34 percent from their Thursday close in sympathy.

Last Friday in the CMGI November option series, the November 15 call saw the brunt of the volume. Over 2,200 contracts changed hands on this now out-of-the-money option, with approximately 1,700 contracts of this volume translating into new open interest.

by 11/13/2000 12:02 PM
Stocks quoted in this article:
The PHLX Box Maker Index (BMX – 139.57) is lower by over four percent after Hewlett-Packard (HWP – 33-7/16) reported disappointing earnings this morning. HWP reported results of 41 cents per share, falling a dime short of the Street expectation, which called for 51 cents per share.

For its part, HWP is down over 15 percent in today's trading. The BMX has now moved back to within shouting distance of its October 1999 low of 134.12. <

by 11/13/2000 11:58 AM
Stocks quoted in this article:
The PHLX Semiconductor Index (SOX – 628.17) is one of only a few bright spots in today's trading. It is reversing off its morning lows, which were around the 600 level. This century mark was the site of a short-term bottom in December 1999, which occurred prior to a 127-percent rally that transpired over the next 3-1/2 months.

In addition, the 600 area marked a brief bottom on October 18, 2000. The SOX rallied 33 percent from its intraday low of 601.96 on October 18 to an intraday high of 801.05 on October 23. <

by 11/13/2000 9:06 AM
Stocks quoted in this article:
In a meeting starting yesterday and concluding this morning in Vienna, Austria, the Organization of Petroleum Exporting Countries (OPEC) decided to hold oil production steady for now. The next scheduled meeting of the group is on January 17. At that time, the board may even discuss cutting production.

While the results of the meeting and comments regarding potential actions going forward offered little hope to consumers suffering from high crude-oil prices, Saudi Arabia's oil minister, Ali Naimi, said OPEC will still try to keep crude prices between $22 and $28 a barrel.

Mr. Naimi also said future production increases would be decided by members of the organization, not necessarily by a formula they agreed upon earlier this year. That formula requires the organization to produce an additional 500,000 barrels a day if the average price per barrel of OPEC crude exceeds $28 for 20 consecutive trading days. "The price-band mechanism is still in place but it doesn't replace good judgment," Mr. Naimi said after Sunday's informal policy meeting.

Despite production increases, the price of oil remains above $30 a barrel. OPEC nations, which claim they are already pumping at nearly full capacity, blame surging oil prices on bottlenecks at refineries and high fuel taxes in many countries. Moreover, the cartel has been reluctant to boost production any more amid worries that an immediate increase could flood the market and cause prices to plummet if demand subsides, which is expected to occur in the spring.

The December Sweet Crude oil contract (CL/Z0) closed Friday at 34.02 per barrel and has found major support at the $32 level. Even the 20-week moving average of the contract sits around $31 and has not been broken to the downside since this past April. In early trading this morning, the spot oil price is at $34.25, up by 23-cents following OPEC's recent statements..

by 11/13/2000 8:59 AM
Stocks quoted in this article:
The 21st-annual Comdex show gets underway today in Las Vegas. Almost one-quarter of a million people are expected to descend upon the city to hear major corporations talk about the future of technology. Until recently, Comdex revolved around the personal computer. But this year, to a greater extent, it will be quite clear that the PC is fading into the background.

Paralleling the recent market action, the show will feature exhibit space dedicated to non-PC, Internet-focused topics ranging from networking, information appliances, and wireless devices, to digital media and e-commerce. The broader focus has helped draw in several major companies that have never before exhibited at the show.

Among the attendees are big players in the tech arena such as Larry Ellison of Oracle (ORCL - 25-7/16), Michael Dell of Dell Computer (DELL - 23), Bill Gates of Microsoft (MSFT - 67-3/8), and Carly Fiorina of Hewlett Packard (HWP - 39-1/8), all of whom will speak about the future of technology.

These shows are an important source of investor fodder going forward and oftentimes the information leaving the convention centers can set the short-term tone for individual equities. <

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.