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by 7/27/2000 2:41 PM
Stocks quoted in this article:
Vignette (VIGN - 35-1/4) is seeing notable option activity on the September 43-3/8 call today, with 9,500 contracts trading versus open interest of 9,648 contracts heading into today's session. Today's action appears to be a liquidation of the vast majority of the open interest at the strike. This is presently the most-active call on the AMEX. The stock is down more than nine percent this afternoon on above-average volume. Yesterday, VIGN reported earnings of a penny per share versus the consensus estimate of breakeven, according to First Call. The alarms went off about the company's growing accounts receivable which has more than outweighed any benefit from beating earnings. VIGN is currently 65 percent below its annual high, which is located at 100-11/16. If analysts turn on the stock, it could mean more downside for the shares given their popularity among brokers. The stock has 18 of 18 "buy" recommendations, according to Bloomberg.<
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by 7/27/2000 2:10 PM
Stocks quoted in this article:
Earnings are not quite as good as they were last quarter, but they are not as bad as some of the negative reactions would indicate. According to First Call/Thomson Financial, 325 S&P 500 companies (65 percent) have reported earnings for the June quarter, and 28 percent have been positive surprises, with only four percent reporting negative surprises. At about the same time last quarter, 38 percent were positive surprises, with only four percent negative surprises. More notable is the lack of upside that comes from meeting or beating estimates. Nokia (NOK - 41-5/8) is the most recent topic of conversation after its better than $50 billion decline in market value after meeting estimates and calling for some caution moving forward. Overall, earnings are a bit softer with the current quarter coming in about 4.4 percent above estimates on average versus 6.6 percent above estimates last quarter. However, earnings are still solidly above estimates, and investors are not really taking notice.<
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by 7/27/2000 2:07 PM
Stocks quoted in this article:
Some negative news in the technology arena has set the tone for the day despite a tame Employment Cost Index report this morning. The S&P 500 Index (SPX - 1448.26) is down by over four points. Currently on the NYSE, 1,431 declining issues are ahead of 1,293 advancers, while 507 issues are unchanged. Down volume leads up volume by 10 percent. The 89 new highs are surpassing the 65 new lows. The Nasdaq Composite (COMP - 3850.6) is lower by over 137 points. Decliners are smashing advancing issues by a 2,843-to-1,032 margin. Down volume is nearly five times greater than up volume. New lows are controlling new highs, 136 to 28. Option volume is showing little fear in the wake of today's market weakness, with the put/call ratio for equities coming in at 0.58 thus far.
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by 7/27/2000 12:21 PM
Stocks quoted in this article:
Unisys (UIS - 9-7/16) is down nearly two percent this morning, reaching its lowest intraday level since early August 1997. Since its annual intraday high on January 24, the stock has been trending in a pattern of lower highs and lower lows, declining by 74 percent under the pressure of its downsloping 10-day moving average. On the options front today, 1,600 contracts have crossed the tape on the in-the-money August 7-1/2 call. Blocks of 1,000 and 500 contracts went off at or near the bid price, indicating that this activity could be call writes. This strike has open interest of just 112 contracts. This is presently the most-active call contract on the International Securities Exchange.<
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by 7/27/2000 12:20 PM
Stocks quoted in this article:
Semiconductor concern Lam Research (LRCX - 27-11/16) has posted second-quarter earnings of 45 cents per share, surpassing analysts' predictions by a penny per share. However, the company's earnings forecasts were as high as 48 cents per share on the Internet. This morning, the security received four reiterations of either its "buy" or "strong buy" ratings from brokerage firms along with a reiteration of its near-term "accumulate" status by a broker. Another brokerage house raised LRCX to a "strong buy." The shares, though, are currently in the red by over three percent, slipping to their worst intraday mark since May 24. The equity has retreated by 40 percent since its intraday high on June 20. In LRCX's options pit today, the in-the-money August 40 put is leading the way with volume of 500 contracts on open interest of 604 contracts.
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