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by 10/9/2000 10:24 AM
Stocks quoted in this article:
Intuit (INTU – 53-5/8) is a financial software company responsible for the popular Quicken and QuickBooks brands. Since August 23, INTU has been trading sideways in a range between the 52 and 60 levels. This sideways consolidation has brought INTU within striking distance of potential support at its 10-week moving average, which is located just above the 53-1/2 level.

INTU options pits were unusually active on Friday, with the bulk of the activity being seen on the January 60 call. More than 5,300 contracts traded on this out-of-the-money position on Friday, generally trading in large blocks around the ask price. This volume boosted open interest at this call strike from 453 to 6,480 contracts.

INTU options activity is minimal today and the shares are trading moderately lower.
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by 10/9/2000 10:14 AM
Stocks quoted in this article:
Sonus Networks (SONS – 107-5/8) provides voice infrastructure products. The security is trading over 14 points, or more than 11 percent, lower this morning ahead of the company's three-for-one stock split. This split will occur after today's close.

With this retreat, the shares have dipped to their worst intraday mark since June 19. Since notching an all-time intraday high on August 8, SONS has stepped back by greater than 61 percent under the pressure of its 10-day and 20-day moving averages.

Despite the equity's recent woes, short interest on this laggard retreated by over 15 percent to just 860,292 shares. From our contrarian stance, we view this decreased skepticism as a potential bearish omen given the security's underperformance.

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by 10/9/2000 9:48 AM
Stocks quoted in this article:
Williams-Sonoma (WSM – 26-7/8) is an upscale retailer of products for the home. The company's network of 300-plus stores includes Pottery Barn and Hold Everything. In mid-September, WSM shares reached a six-month peak at 45-3/8. Since then, the equity has been declining rapidly and has relinquished 40 percent of its value through Friday's close.

The security is poised to take a turn for the worse today, as it is currently halted with an indicated bid price of 19 and an indicated ask price of 22. This impending plunge lower was catalyzed by the company's announcement that it will likely earn four to six cents per share for the third quarter. Analysts had expected the retailer to earn 18 cents per share. WSM cited disappointing catalog sales as the primary reason for this shortcoming. So far today, WSM had already been downgraded by two brokerage firms. <
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by 10/9/2000 9:39 AM
Stocks quoted in this article:
Emulex (EMLX – 108-3/16) is a maker of computer-networking equipment. The company announced late Friday that it will split its shares two for one after its stock more than doubled in value over the past year.

In response to this news, EMLX gapped nearly two points higher at this morning's open, but it is currently just fractionally in the black. On Friday, the security declined by over three points, as the equity ended up just below its 20-day moving average. However, the shares finished last week's activity above their ascending 10-week moving average, a trendline that has offered flawless support on a weekly closing basis since late July.

According to information from Zacks Online, there are only eight analysts now covering EMLX. Any new positive coverage in reaction to this stock-split decision could give the security a short-term boost.

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by 10/6/2000 3:37 PM
Stocks quoted in this article:
One of the lone positive indices in late-afternoon trading is the PHLX Utility Index (UTY – 355.29). The UTY has elevated by just under six points, as the index is poised to end its three-session losing streak. The UTY remains below its 10-day and 20-day moving averages, but it is above all of its key intermediate-term and long-term trendlines.

Components sending the index higher today include Dominion Resources (D – 53-11/16), up 5.2 percent; PG&E Corp. (PCG – 24-11/16), up 4.5 percent; and Entergy (ETR – 35-3/4), up 4.1 percent. D agreed to sell $948 million in commercial loans to General Electric's (GE – 58-1/16) Capital unit for an undisclosed sum.


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