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by 10/2/2000 2:38 PM
Stocks quoted in this article:
Navistar International (NAV – 36-5/16) has shot up over 20 percent so far today on rumors that PACCAR (PCAR – 38-1/16) has made a bid to acquire the company. PCAR has denied the rumors, and NAV has declined comment. NAV had been in a near-term decline, retreating approximately 23 percent from early September to Friday's close.

Despite the equity's recent weakness, Schaeffer's put/call open interest ratio (SOIR) on NAV is trending near an annual low of 0.19. Option activity on NAV has heated up today in reaction to this rumor. On the call side, over 2,000 contracts have traded on the October 35 call, which could represent profit taking on the 2,934 contracts open at this strike. The October 35 put has seen over 800 contracts cross the tape. Since this option has open interest of just 471 contracts, at least some of this activity should result in new positions.
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by 10/2/2000 10:58 AM
Stocks quoted in this article:
Semiconductor company Silicon Valley Group (SVGI – 37-1/4) will be acquired by Dutch firm ASM Lithography Holdings for $1.6 billion in stock. SVGI has surged over 41 percent higher on this news. This propels the stock out of an intermediate-term trading range that had seen the shares bounce between 20 and 33 since late January. The equity is presently trading at its highest level since September 1997.

The normally humdrum pace of SVGI's options pit has picked up today, with volume skewed to the call side. So far, almost 1,800 call contracts have traded compared to just 160 put contracts.
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by 10/2/2000 10:49 AM
Stocks quoted in this article:
This morning, Walgreen Co. (WAG – 37-3/8) reported fourth-quarter earnings that were in line with analysts estimates of 19 cents per share. The stock is having a lackluster response to this news, as it has declined fractionally to test its 20-day moving average. However, the equity has staged a near term rally that has seen the shares appreciate by almost 70 percent since a near-term low in early March.

The security has pushed past options-related resistance at the 35 strike with 2,469 contracts in residence on the October 30 call. However, WAG still must take out 2,274 call contracts at the October 40 strike.

Pessimism is growing on the shares, as Schaeffer's put/call open interest ratio (SOIR) has risen from 0.19 in late August to today's reading of 0.75. <
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by 10/2/2000 9:52 AM
Stocks quoted in this article:
Energy products company Dynergy (DYN – 57-3/4) said that it expects to report recurring net income of 55 cents per share in the third quarter, which is above analysts' estimates of 51 cents per share. The stock is up over a percent this morning in response to this news. The shares have been on a tear this year, gaining over 450 percent since late December.

Despite this stellar price action, DYN's options configuration reflects pessimism. Schaeffer's put/call open interest ratio (SOIR) currently stands at 1.95, which means that put open interest exceeds call open interest by a margin of almost two to one for options expiring within the next three months. For more information on SOIR, please visit Schaeffer's Daily Sentiment. <
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by 9/29/2000 4:03 PM
Stocks quoted in this article:
So far this earnings preannouncment season, negative earnings warnings are coming in at a greater clip than last quarter. First Call/Thomson Financial said 257, or 64 percent, of the 399 companies that have provided earnings guidance for their upcoming quarterly earnings warned they will miss analysts' expectations. Fifty-one of these companies, or 13 percent, expect to beat analysts' estimates, and 91, or 23 percent, anticipate they will match projections.

In the year-ago quarter, 60 percent of preannouncements warned of shortfalls, 24 percent pointed to on-target results, and 16 percent foresaw a better-than-expected bottom line.
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