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

by 10/5/2000 12:01 PM
Stocks quoted in this article:
The Morgan Stanley Consumer Index (CMR – 529.08) is not participating in today's broad-market weakness, as the index has strengthened by just over six points. This upswing takes the CMR to its highest intraday mark since August 22 and back above its 10-week, 20-week, and 20-month moving averages. The index has finished the past four months beneath its 20-month trendline, a technically significant moving average that we view as the line of demarcation between a bull and a bear market.

Components leading the CMR higher this morning include Gillette (G – 31-13/16), up 6.2 percent; Colgate-Palmolive (CL – 48.98), up 4.3 percent; and Procter & Gamble (PG – 72-7/16), up 3.1 percent. G was upgraded from "neutral" to near-term "accumulate" and from "accumulate" to long-term "buy" by Merrill Lynch (MER – 66-11/16). MER also upgraded CL and PG to "accumulate" status from "neutral" ratings.

<
permalink


by 10/5/2000 11:16 AM
Stocks quoted in this article:
Yesterday evening, Harmonic (HLIT – 14-3/4) said that it expects to report a pro forma loss of six to nine cents per share for the third quarter, which is well below analysts' estimates of a 12-cents-per-share profit. The company also said that it will likely report a loss in the fourth quarter, while the Street had expected earnings of 14 cents per share.

The stock has plunged over 34 percent on this news to hit its lowest level since April 1999. HLIT is in the midst of a intermediate-term collapse that has seen the shares relinquish 90 percent of their value since their early-March all-time high.

In HLIT's options pit, spread trades have been initiated using the October 17-1/2 and October 30 puts. The October 17-1/2 put, which had no open interest coming into today, has seen 2,825 contracts cross the tape. Over 3,000 contracts have traded on the October 30 put on open interest of 3,682 contracts.
permalink


by 10/5/2000 9:57 AM
Stocks quoted in this article:
Yesterday after the close, Pitney Bowes (PBI – 27-1/4) said that its full-year 2000 earnings would range between $2.44 and $2.48 per share, while analysts had expected the company to post net income of $2.58 per share. This warning prompted two major brokerage firms to cut their ratings on the stock. After a delay at the open, PBI gapped 8-1/8 points lower and is presently sitting at its lowest level since January 1997.

Options players were apparently anticipating this news. Over the past few sessions, PBI's options configuration has taken a pessimistic turn. Its Schaeffer's put/call open interest ratio (SOIR) jumped from 0.29 on Monday to 0.74 today. During that time, put open interest tripled for options expiring within the next three months, while call open interest increased by only 22 percent.
permalink


by 10/5/2000 9:46 AM
Stocks quoted in this article:
HealthSouth (HRC – 9-11/16) hit an annual high in early trading this morning after a brokerage firm upped its rating on the stock from a "buy" to a "strong buy." Since a near-term low on July 26, the shares have advanced by 86 percent. This week, the equity broke above the 8 level, an area that had served as the top of a year-long trading range. Although HRC has shown renewed strength of late, it remains well off its all-time high of 30-13/16 from April 1998.

Options players are apparently looking for HRC's rally to continue, as its options configuration has taken on an optimistic bias. Schaeffer's put/call open interest ratio (SOIR) on HRC has risen from 0.48 in early September to today's annual low reading of 0.13. For more information on SOIR, please visit Schaeffer's Daily Sentiment. <
permalink


by 10/5/2000 9:24 AM
Stocks quoted in this article:
In a follow-up to a September 21 Market Observation on Minnesota Mining & Manufacturing (MMM – 95-1/2), the stock heated up by more than one point in Wednesday's trading. This carried the blue-chip issue to its top intraday mark since August 28. Since logging a near-term intraday low on September 20, the shares have gained nearly 19 percent, prompting a bullish crossover of their 10-day and 20-day moving averages. The security is also now trending above all of its significant intermediate-term and long-term moving averages.

Despite MMM's recent success, its Schaeffer's put/call open interest ratio (SOIR) is currently at 0.36, its highest level since late July. As contrarians, we believe that this rise in pessimistic sentiment could have bullish implications for the equity. Check out Schaeffer's Daily Sentiment to learn more about SOIR.

<
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
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: 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.