Schaeffer's Daily Market Blog Features Linear Technology, Motorola, Check Point Software Technologies, Juniper Networks, and Lucent Technologies.

CINCINNATI -- Among the stocks featured in the January 19 edition of Schaeffer's Market Blog are Linear Technology (NASDAQ:LLTC), Motorola (NYSE:MOT), Check Point Software Technologies (NASDAQ:CHKP), Juniper Networks (NASDAQ:JNPR), and Lucent Technologies (NYSE:LU). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU1M&PAGE=1.

Schaeffer's Market Blog for Wednesday, January 19, 2005:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

9:43 AM Linear Technology Beats Estimates, Boosts Dividend

Linear Technology (NASDAQ:LLTC) reported first-quarter earnings results of 33 cents per share last evening, beating the consensus estimate of 32 cents per share. In addition, LLTC boosted its second-quarter dividend to 10 cents per share from eight cents per share. The options on LLTC were more active than usual yesterday. On the put side, 10,269 contracts traded, representing 6.6 times its average daily put volume. On the call side, 14,244 contracts traded, which is five times greater than its average daily call volume. After the dust settled, the Schaeffer's put/call open interest ratio (SOIR) was unchanged at 0.75. This reading is lower than 70 percent of the readings taken over the past year. LLTC is up more than two percent in early trading.

13:32 AM Motorola's Fourth-Quarter Results Beat, but Outlook Disappoints

Motorola (NYSE:MOT) reported fourth-quarter earnings results of 27 cents per share, beating the consensus estimate of 24 cents per share. However, the company's first-quarter earnings outlook of 17-20 cents per share was lower than the Street's expectations of 20 cents per share for the quarter. MOT shares are down more than five percent this morning as a result. Investors had grown more bullish over the past few weeks, as evidenced by a drop in the Schaeffer's put/call open interest ratio (SOIR). The SOIR has declined from 0.98 on January 7 to its current reading of 0.71. The percentile rank dropped from 92 to 42 percent over this time. The short-interest ratio is at 1.69, which is the lowest reading in several years.

10:58 AM Check Point Software Technologies Tops Earnings Estimates

Last night after the market close, Check Point Software Technologies (NASDAQ:CHKP) reported an increase of 17 percent in fourth-quarter earnings. CHKP reported earnings of 31 cents per share, two cents better than analyst expectations. In the company conference call, CHKP announced that it sees first-quarter revenue in a range of $136-140 million, versus the Reuters consensus of $138 million. Yesterday, call options traded actively on CHKP ahead of the earnings report, as call volume was 5.1 times heavier than average. More than 16,200 call contracts crossed the tape, with the most active being the February 25 strike (KEQ BE). Investors traded more than 6,400 KEQ BE contracts yesterday. The heaviest activity occurred at 1:30 p.m. when 1,250 contracts marked "spread" traded between the bid and the ask. A look at overall option activity on CHKP shows that investors currently hold 77,900 calls and 37,500 puts in the near term. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.48 is lower than 93 percent of all readings taken over the past year. At last check, CHKP was trading $1.18 higher to $24.20 today.

12:27 PM Juniper Networks Reports Earnings Results

Last night after the market close, Juniper Networks (NASDAQ:JNPR) reported quarterly earnings of 15 cents per share, a penny ahead of analyst expectations. Revenue also came in ahead of expectations, as JNPR reported revenue of $430.1 million versus the $413.5 million consensus estimate. The equity was downgraded from "strong buy" to "market perform" this morning at Raymond James. Yesterday, puts traded actively on JNPR, as put volume was 5.4 times heavier than average. More than 18,300 put contracts crossed the tape, with the most active being the January 25 strike (JUX AE). Investors traded nearly 6,500 JUX AE contracts yesterday. The largest trade of the day occurred at 3:33 p.m. when 4,050 contracts marked "spread" traded at the ask price, suggesting they were purchased. A look at overall option activity on JNPR shows that investors currently hold 183,500 calls compared to 116,000 puts in the front three months of activity. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.63 is lower than 85 percent of all readings taken over the past year. At last check, JNPR was trading $1.11 lower to $25.38 today despite the positive earnings surprise.

1:32 PM Lucent Drops After Earnings Report

Lucent Technologies (NYSE:LU) may have the largest difference between put and call options of any stock that currently trades options. The equity has 923,496 more call options outstanding than it does put options. The stock sports a Schaeffer's put/call open interest ratio (SOIR) of 0.19, which is lower than all readings taken for LU over the past year. Performance of the security has lagged since early 2004, yet the optimism on the issue still runs quite high. Even today, after the stock reported earnings that matched Wall Street expectations, call option volume is again quite high. In fact, call volume on LU today is running 4.7 times the average call volume for the stock. All this optimism isn't helping the stock move higher (shares are off nearly seven percent today), and could cause further weakness over the near-term future.

The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.