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

by 10/13/2000 12:55 PM
Stocks quoted in this article:
As a follow-up to a Market Byte yesterday, KLA-Tencor (KLAC – 34-7/8) saw some significant option activity yesterday in response to its positive earnings surprise. As a result, open interest on the October 40 put rose from 996 to 6,986 contracts. This was one of the most-active puts on the Pacific Exchange yesterday.

Due to this increase in put open interest, Schaeffer's put/call open interest ratio (SOIR) on KLAC jumped from yesterday's high reading of 1.08 to an annual high of 1.34 today. This pessimism is understandable given that the shares remain 64 percent off their all-time high from early April.

In today's action, investors are still opting for puts, as over 1,000 contracts have traded at the out-of-the-money October 25 strike, which has open interest of just 17 contracts.
permalink


by 10/13/2000 12:28 PM
Stocks quoted in this article:
Seagram (VO – 56-3/8) is riding the general wave higher with a four-percent advance so far today. However, the shares have been trending sideways since April 1999.

VO saw some heavy option activity yesterday, which resulted in a 1,900-contract increase to open interest on the November 55 put. Open interest at this strike now stands at a hefty 7,919 contracts. This heavy open interest could now serve as options-related support for the shares, which climbed above the 55 strike in late-morning trading. <
permalink


by 10/13/2000 12:28 PM
Stocks quoted in this article:
Last night after the close, PMC-Sierra (PMCS – 168-1/16) reported pro forma third-quarter earnings of 31 cents per share, which compares favorably to Street estimates of 26 cents per share. The equity has gotten a nice boost from this news and is up over six percent in early-afternoon trading. However, the shares continue to trade below their key short-term and intermediate-term moving averages as well as their 10-month trendline.

The most-active PMCS option is the November 160 call, which has seen 1,528 contracts cross the tape so far today. Since this option has open interest of only 230 contracts, much of this activity likely represents new positions. Several mid-sized blocks have transacted near the ask. <
permalink


by 10/13/2000 12:19 PM
Stocks quoted in this article:
Business Week has reported in its "Inside Wall Street" column that GM Hughes Electronics (GMH – 29.80) could receive a buyout bid from a group that includes Kohlberg Kravis Roberts & Co. The article states that GMH could fetch $60 to $70 per share in the buyout.

GMH has elevated by just over two points, or more than seven percent, in early afternoon trading in response to this development. The security, though, remains beneath all of its significant short-term and intermediate-term moving averages as well as its 10-month trendline. The shares also have received support of late from their upsloping 20-month moving average, which has served a perfect support on a monthly closing basis since September 1998.

In GMH's options pit today, it appears that 4,690 contracts have been rolled out from the October 35 put to the November 35 put. These are currently among the most-active puts on the AMEX. What's more, 1,344 contracts have transpired on the October 30 call. These could be liquidations, as the option has open interest of 18,287 contracts.

<
permalink


by 10/13/2000 12:05 PM
Stocks quoted in this article:
On Thursday, online advertising name DoubleClick (DCLK – 12-1/2) said that its third-quarter loss widened as expenses more than doubled. The company also announced that its advertising sales would be weaker in the first quarter of 2001.

Not surprisingly, investors have shown their displeasure with this news, as the stock is down more than five points, or over 31 percent, in late-morning action. This has sent the shares to levels not seen since early January 1999 and continued their near-term weakness. Since DCLK's near-term intraday high on September 20, it has plunged greater than 70 percent under the pressure of its downtrending five-day moving average.

On the options front this morning, 2,214 contracts have traded on the January 12-1/2 call. This near-the-money option has no open interest, so all of today's activity should become new positions. Additionally, 1,126 call contracts have crossed the tape at the out-of-the-money January 15 strike. On the put side, the out-of-the-money January 10 put has seen volume of 2,425 contracts on no open interest.


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.