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by 1/9/2001 12:13 PM
Stocks quoted in this article:
In an early-afternoon press release, United Parcel Services (UPS - 60-13/16) announced a $6 billion aircraft order from the European aircraft consortium Airbus. The deal will be spread over a total of nine years and includes options to purchase an additional 50 aircraft. Technically speaking, UPS is attempting to overcome resistance at the 61 level. <
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by 1/9/2001 10:31 AM
Stocks quoted in this article:
Intel (INTC - 32-7/8) has been trading in a firm range between the 30 and 35 strikes since December 14. An analysis of the options open interest configuration on INTC indicates that call sellers at the 35 strike and put sellers at the 30 strike will be extremely happy if this price action continues through January expiration on January 16.

The peak put open interest for INTC resides at the 30 strike, where there is over 67,000 contracts. Those that sold puts to open positions would love to see INTC close above 30 at January expiration. At the same time, there is heavy call open interst at the INTC January 35 strike, where there is over 60,000 contracts. Those that sold 35-strike calls would welcome INTC closing below 35 on January expiration.

If the shares approach 35 as expiration nears, demand for INTC shares could temporarily overcome supply as call sellers hedge their positions by going long INTC stock to offset losses as the calls increase in value. Or, if the shares approach 30 as expiration nears, supply could temporarily overcome demand for INTC stock as put sellers look to hedge their positions by shorting INTC stock. <
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by 1/9/2001 8:57 AM
Stocks quoted in this article:
Biopharmaceutical company Enzon (ENZN – 47-11/16) has been pulled lower by weakness in the biotech sector over the last three trading sessions. ENZN has given back over 22 percent since last Wednesday's close. The stock was able to manage a bounce yesterday off potential long-term technical support in the form of its 20-month moving average. This trendline acted as rough support for the stock during its spring plunge.

In yesterday's trading, the January 60 call was active. Nearly 1,100 contracts changed hands on the out-of-the-money option, with about 900 contracts of the volume translating into new open interest. <
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by 1/9/2001 8:56 AM
Stocks quoted in this article:
March crude oil futures (CL/H1 – 26.51) pulled back to test their rising 10-day moving average in yesterday's trading. OPEC is widely expected to make output cuts when the body meets on January 17. From a longer-term perspective, the CL/H1 still remains well above its 20-month moving average, which stands at approximately $24 per barrel. <
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by 1/9/2001 8:56 AM
Stocks quoted in this article:
Countywide Credit (CCR – 48-1/2) is the nation's largest independent residential mortgage lender and service provider with offices nationwide. CCR has run through the jungle of the broader market and stands just off its 52-week high of 52 logged last Thursday. The stock has held up despite reporting earnings on December 27 that missed the Street estimate by a penny per share.

Over the past three weeks, the shares have been in a tight consolidation that has now been met by their ascending 20-day moving average. In yesterday's trading, the July 50 call was active. A total of 5,000 contracts changed hands on the day with all of the volume translating into new open interest. <
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