Schaeffer's Midday Options Update Features Onyx Pharmaceuticals, MGM Mirage, MAF Bancorp, ImClone Systems, Tessera Technologies.

Business Editors

CINCINNATI--(BUSINESS WIRE)--June 7, 2004

Today's Schaeffer's Midday Options Update Features Onyx Pharmaceuticals (Nasdaq:ONXX), MGM Mirage (NYSE:MGM), MAF Bancorp (Nasdaq:MAFB), ImClone Systems (Nasdaq:IMCL), Tessera Technologies (Nasdaq:TSRA). The Midday Options Update contains a brief commentary on the day's most notable activity and a table listing the most active calls and puts for the day. The Midday Options Update is published every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. 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/addinfo.

Schaeffer's Midday Options Update

Investor optimism from Friday's better-than-expected employment report spilled over into today's trading as the market roared back to life. After a brief two-minutes of silence to mourn the passing of former president Ronald Reagan (who died over the weekend), the Nasdaq Composite reclaimed the psychologically important 2,000 level, while the Dow put on a triple-digit display of strength.

Mergers and acquisitions dominated the corporate headlines today. Sparking today's activity, MGM Mirage (NYSE:MGM) offered up a $7.6-billion merger deal for Mandalay Resort Group. The combined company would control more than one-third of the hotel rooms on the Las Vegas Strip. Also, MAF Bancorp (Nasdaq:MAFB) announced that it's buying Chesterfield Financial for $128.5 million in cash and stock. Under the terms of the deal, which is expected to close in the fourth quarter, MAFB will pay $31.50 for each share of CFSL, 65 percent of it in cash and 35 percent in stock.

Elsewhere on the M&A scene, Wheaton rejected the raised buyout offer from Coeur d'Alene Mines of C$285 million. The firm's board of directors reaffirmed its recommendation that shareholders vote in favor of the IAMGOLD deal. Not to be left out of the Monday merger mania, RC2 Corp. announced a pair of acquisitions, including an all-cash deal for First Years valued at $136.8 million. Alternately, RCRC said it will buy privately-held Playing Mantis for $19.5 million in cash and stock.

Pharmaceutical stocks also made their bid for investor attention today, releasing a steady stream of drug trial data. ImClone Systems (Nasdaq:IMCL) reported that its lead onocology drug Erbitux increased survivability rates in some cancer patients. The firm's researchers stated that Phase III clinical trials showed that Erbitux significantly improved the survival rate of head and neck cancer patients, when used in conjunction with traditional radiation therapy. Amylin reported favorable results from two drug studies centered around its type-two diabetes medication called Exenatide. Studies showed that the drug assists insulin response and improves glucose control. Not all the news was rosy, however, as Genta reported that a Phase II trial of its Genasense treatment for advanced melanoma failed to achieve a statistically significant increase in survival rates among patients.

Thinning earnings news trickled in today, as Tessera Technologies (Nasdaq:TSRA) raised its second-quarter and 2004 forecasts. The company now expects second-quarter earnings of 16 cents per share, up from its prior estimate of nine cents per share. For the full year, the firm upped the ante to earnings of 46-48 cents per share and revenue of $57-$59 million, rising over its prior earnings guidance of 41-46 cents per share and revenue of $54-$56 million.

At 1:15 p.m. eastern time, the Dow Jones Industrial Average (DJIA - 10335.8) is up 0.91 percent and the S&P 500 Index (SPX - 1133.82) is higher by 1.01 percent. The Nasdaq Composite (COMP - 2001.2) is up 1.14 percent. At 1:17 p.m. in the options pits, 1,291,136 calls and 804,987 puts traded for a composite put/call ratio across all five exchanges of 0.62. The CBOE put/call ratio for equity options weighed in at 0.50.

According to Yahoo!Finance, Onyx Pharmaceuticals (Nasdaq:ONXX) discovers and develops cancer therapies utilizing two technology platforms: small molecules that inhibit proteins involved in excess growth signaling, and therapeutic viruses that selectively replicate in cells with cancer-causing mutations. In today's news, an analyst at a major brokerage stated that the company needs more data on its melanoma treatment BAY-43-9006 (which it is developing jointly with Bayer AG) before it will be able to successfully file a new application with the FDA.

On the news, ONXX has shed more than five percent, pulling back to long-term support at the 40 level. Not only is this round-number level important from a psychological perspective, but it is also the site of peak front-month put open interest totaling more than 8,000 contracts. The 40 level has also supported all pullbacks in the shares since the beginning of April. However, today's weakness has placed the security squarely below its 20-week moving average - a trendline the equity has not traded below since February 2003. With previous support at the stock's 10-week now acting as resistance toward ONXX, the addition of the 20-week as resistance puts further importance on the stock's ability to hold support at the 40 level.

Expanding on the brief sentiment anecdote offered above, options speculators continue to bet heavily against ONXX. The security's Schaeffer's put/call open interest ratio of 0.59 is now higher than 70 percent of all readings taken in the past year. What's more, heavy activity at the July 40 put and June 45 put (with 8,679 and 4,569 contracts, respectively, trading so far today) indicates that investors may opt to continue this trend should all of this activity translate into new positions tomorrow.

Short sellers are also evidencing their disdain for the stock, as short interest soared 15 percent over the most recent reporting period. However, this accumulation of bearish bets could be covered in approximately two days at the stock's average daily trading volume, and would offer up very little in the way of support for ONXX. Wall Street remains bullish in its opinion of this pharmaceutical concern. According to Zacks, analysts have handed out five "buys" and three "holds" on the security. With a declining technical picture and unraveling bullish sentiment, any analyst downgrades could force the ONXX below its last bastion of support in the 40 area and send the shares spiraling lower.

Click the following link to see the Weekly Chart of ONXX since December 2003 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=10319 .

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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 .