Stocks quoted in this article:
Charles Schwab (SCH - 37) said today that although August was its slowest month so far this year, daily average trades rose 42 percent from the year-ago period. Total assets held in client accounts surpassed the $1 trillion mark in August, up 43 percent from August 1999. The stock is trading down fractionally this morning and remains within a tight, two-month trading range between approximately 35 and 40.
Yesterday, 21,757 contracts were added to the October 37-1/2 call, making it by far the site of peak open interest at 22,121 contracts. In today's option action, over 3,000 contracts have changed hands on the October 35 call. Two blocks of 1,500 and 1,000 contracts transacted between the bid and the ask, making it difficult to assess the investors' intentions. Open interest on the October 35 call amounts to only 390 contracts, so today's activity will likely result in new positions.