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

by 8/16/2000 9:44 AM
Stocks quoted in this article:
In Tuesday's trading, Deere & Co. (DE - 33-15/16) reported third-quarter earnings of 72 cents per share, topping Street expectations by 13 cents per share. However, the company also warned that weakness in the farm equipment economy will likely continue next year, with forecasts in retail sales in the U.S. and Canada to be flat to down five percent. In response to this news, the stock dropped by nearly four points, or more than 10 percent, to reach its worst intraday mark since March 8 on above-average volume. Since the shares' near-term intraday high on May 22 through yesterday's close, they had stepped back by about 33 percent. This decline has taken DE beneath all of its significant moving averages. On the options front on Tuesday, the out-of-the-money August 35 call had volume of 1,869 contracts on open interest of just 58 contracts. After the open-interest translations, open interest at this strike now stands at 843 contracts. This morning, the security is attempting a comeback, as it is up greater than two percent.<
permalink

by 8/16/2000 9:33 AM
Stocks quoted in this article:
Aviall (AVL - 5-1/2) distributes commercial parts for the aviation and marine industries. The company serves customers in about 80 countries around the globe. The company has been publicly traded since late 1993 and is presently trading near an all-time low. Since early April of this year, AVL shares have been consolidating in a tight range between the five and six levels. Prior to four months ago, AVL had remained above the six area since its inception. Yesterday, AVL saw above-average option activity as a number of put contracts were rolled forward from the back-month September series out to the March 2001 series. In total, 3,000 contracts were traded on each option. A number of large blocks traded as spreads between the two strikes shortly after the opening bell. The September-series positions traded off or near the ask price, while the March options went off between the bid and the ask prices. AVL is unchanged in early trading on Wednesday.
permalink

by 8/16/2000 9:03 AM
Stocks quoted in this article:
Federal regulators finally gave approval to Clear Channel Communications (CCU - 83-11/16) to purchase AMFM (AFM - 78-5/16). The all-stock deal, which was originally agreed upon in October, was valued at $16.6 billion. The companies must now divest 122 stations in 37 markets and will do so concurrently with the merger, which will create the nation's largest radio company. Yesterday, CCU had traded as high as 85 before settling at the close up 1-1/2 points on volume twice the daily average. AFM shares closed up over two percent on slightly accelerated volume. Peak call options open interest on CCU for September lies at the 80 strike with 3,855 contracts. The September 70 put leads on the short side with 1,019 open contracts.
permalink

by 8/16/2000 8:59 AM
Stocks quoted in this article:
As one of the first major securities firms to embrace online trading, Charles Schwab (SCH - 37-13/16) announced that it plans to offer pre-market trading. Tentatively starting at the end of this month, the company will offer the availability to place limit orders of up to 5,000 shares between 7:45 a.m and 9:15 a.m. on both the NYSE and the Nasdaq. As opposed to a market order, a limit order sets the price at which the trade is to be executed. The question becomes is there enough liquidity in the market at those hours to match buyers with sellers at the limit prices. SCH shares finished lower (during regular market hours) yesterday at 37-13/16, off 5.47 percent. The stock is approaching the site of peak August call open interest. The August 37-1/2 call and the August 40 call boast open interest of 6,600 and 5,352 contracts, respectively. However their importance is rapidly waning as we approach Friday's August series expiration. The September series has 5,477 contracts at the 40 call compared to 791 put positions at the September 40 strike. The shares have enjoyed continued support of their 10-week moving average since early June, which currently resides around 36.<
permalink

by 8/16/2000 8:48 AM
Stocks quoted in this article:
This morning, the Labor Department released the July Consumer Price Index results. Overall, consumer prices rose by 0.2 percent, down from the 0.6 percent advance in June. The results were slightly higher than expectations, which called for a 0.1-percent rise in consumer prices. The core index, which excludes the volatile food and energy sectors, came in at estimates with a 0.2 percent advance. Today's numbers should help to reassure investors that inflationary pressures in the economy remain rather light. In addition, many economists increasingly believe that the recent inflation friendly economic indicators will allow the Federal Reserve to hold off potentially raising interest rates at its late-August policy setting meeting. The initial reaction to the news has been moderately negative, with the September S&P 500 Index Futures contract (SP/U0 - 1495.40) declining from a high of 1498.50 to a low of 1493.80 upon the release of the numbers. Currently, S&P futures are up 0.60 points at 1495.40, indicating a flat open.
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.