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by 5/23/2000 9:02 AM
Stocks quoted in this article:
The option activity on America Online (AOL - 52) continues to be dominated by out-of-the-money calls. In yesterday's trading, the June 55 call saw over 22,000 contracts cross the tape, with approximately 20,600 contracts translating into new open interest. The further out-of-the-money June 60 call was also active. It traded nearly 25,000 contracts, although the activity resulted in a net reduction to open interest of about 12,500 contracts. AOL shares recently moved below their 20-month moving average, a bastion of long-term support in the past. If AOL shares are not able to close above the 20-month on Friday (which currently resides at 54), it will mark the first monthly close below this trendline since February 1997.
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by 5/22/2000 4:35 PM
Stocks quoted in this article:
Yahoo! (YHOO - 126-1/4) had a wild ride today, as it fell sharply in early trading only to recover to post a strong gain. YHOO sagged by more than five points in the last half hour of last Friday's session to close at 120-5/16. The stock continued to drop this morning, falling as low as 113-1/4 at 10:30 amid the broad-market weakness. The shares then began their recovery, posting higher highs and higher lows throughout the remainder of the day to close more than five percent higher. Following Friday's expiration, the Schaeffer's put/call open interest ratio (SOIR) for YHOO rose to its highest level in more than a year to 1.15, indicating that there are 15 percent more open put positions than call positions. Not only is the SOIR for YHOO high in comparison to its own historical pattern, it is also very high with respect to the universe of equities. Most equities have SOIR numbers below one, indicating a preponderance of calls. As contrarians, we interpret the extreme skepticism on YHOO as it moves higher off strong technical support bullishly, and look for more strength to come. <
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by 5/22/2000 4:01 PM
Stocks quoted in this article:
Since bottoming out slightly below the 30 level in early February, General Mills (GIS - 39-1/2) shares have tacked on over 35 percent. This rally has been supported by the stock's 10-day and 20-day moving averages. This month, the equity is poised to close above its 10-month and 20-month moving averages for the first time since October. Before the open this morning, Donaldson, Lufkin and Jenrette (DLJ) slashed its rating on GIS from a "buy" to a "market perform." The stock opened slightly lower but has recovered throughout Monday's session and is trading only fractionally in the red shortly before the close. <
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by 5/22/2000 3:37 PM
Stocks quoted in this article:
Dillard's Inc (DDS - 14-1/2) is the number-3 operator of upscale department stores in the U.S., according to Hoovers Online. The company's stores are primarily focussed in the Midwest and South, although it also has locations in the Western half of the country. DDS has relinquished over two percent in Monday's trading after reporting first-quarter earnings of 48 cents per share. This fell well below analysts' expectations of 59 cents per share. Additionally, DDS officials said that same-store sales for the quarter declined two percent compared to 1999 levels. For the past two months, DDS shares have been trading in territory not seen since the early half of 1989. Holding the stock at these 11-year lows is resistance in the form of their 10-week and 10-month moving averages. <
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by 5/22/2000 3:23 PM
Stocks quoted in this article:
In the midst of today's broad-market decline, one of the few names trading in positive territory is insurance conglomerate American International Group (AIG - 118-7/8). On a technical note, the stock was able to catch support at its 20-day moving average early in the trading session and has since managed to surge into positive territory. Currently, the stock is up 2.2 percent on the day. From a longer-term perspective, AIG has shown excellent strength versus the broad market. Although the S&P 500 Index (SPX - 1394.30) is off over five percent this year, AIG is up over nine percent in 2000. In fact, the stock is currently trading within three percent of its May 16 all-time high.
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