Schaeffer's Midday Options Update Features Oracle, DoubleClick, Delta Air Lines, Tyco International, and Citigroup.

CINCINNATI -- Today's Schaeffer's Midday Options Update Features Oracle (Nasdaq:ORCL), DoubleClick (Nasdaq:DCLK), Delta Air Lines (NYSE:DAL), Tyco International (NYSE:TYC), and Citigroup (NYSE:C). 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/redirect.aspx?CODE=PROB1M&PAGE=1

Options Update: Banking on Sentiment on Citigroup

Providing a bit of lift for traders in this otherwise uncertain trading session, the price of crude oil has dropped back below the $50 level today. The pullback in black gold appears to have briefly overshadowed a largely uncertain Presidential election and a slew of questionable economic reports today. At last check, crude for December delivery was down $2.11 to $49.65 after climbing as high as $52.50 earlier in the session. Elsewhere in the oil patch, the Nigeria Labor Congress has labeled Royal Dutch/Shell Group an "enemy of the Nigerian people," and is calling for action against the firm.

On the economic front, mixed data kept the major indexes tangled and flat before the crude revelation sent stocks skipping higher. According to the Commerce Department, consumer spending rose 0.6 percent during September, compared with a revised 0.1-percent decline in August. Meanwhile, personal incomes rose 0.2 percent, arriving slightly below economist expectations for a 0.3-percent increase. Adding to the mix, the U.S. manufacturing sector continues to plod ahead despite sluggish growth. The Institute of Supply Management's (ISM) manufacturing index fell to 56.8 percent from 58.5 percent in September, disappointing economists who were expecting a rise to 58.9 percent. Keep in mind that readings over 50 indicate growth in the sector. For more on the ISM report, please read: "ISM Misses Street Forecast."

Merger Mania

Merger and acquisition news has been a hot topic today, as Oracle (Nasdaq:ORCL) has blasted back into the headlines by increasing its bid for PeopleSoft (PSFT) today. The firm raised its cash offer to $24 per share from $21, claiming that this is ORCL's "best and final" offer. If the majority of PSFT shares are not tendered by November 19, officials for the database software giant said that the deal would be withdrawn.

The M&A trail heated up even more when DoubleClick (Nasdaq:DCLK) said that it may be considering a sale of all or part of the company. Officials for DCLK announced that they have retained investment banker Lazard Freres to explore options for increasing shareholder value. Shares of DCLK have soared more than 13 percent on the news so far today.

Get Your Wings

Nearly grounded airline concern Delta Air Lines (NYSE:DAL) has added another feather to its cap today that could go a long way to forestalling the company's looming bankruptcy prospects. DAL announced earlier today that it has obtained a $500-million financing commitment from GE Commercial Finance. Following on the heels of last week's nearly $1 billion in concessions from its pilots union, the skies are looking increasingly friendly for DAL, as the stock is up nearly three percent in trading today.

Earnings Slow to a Trickle

With the intensifying political landscape overshadowing most of today's data, many of you may have missed Tyco International's (NYSE:TYC) fourth-quarter earnings report this morning. For the quarter, TYC posted a profit of $454 million or 22 cents per share, easily sweeping past its year-ago loss of $297 million, or 15 cents per share. Excluding one-time items, TYC raked in 45 cents per share, besting the consensus estimate by two cents per share. Revenue for the quarter soared 13 percent higher to $10.44 billion, matching expectations. For more on TYC, check out: "Tyco International Beats the Street."

Most-Active Options Update

At 1:03 p.m. eastern time, the Dow Jones Industrial Average (DJIA - 10,056.2) is up 0.29 percent and the S&P 500 Index (SPX - 1131.10) is higher by 0.07 percent. The Nasdaq Composite (COMP - 1980.4) is up 0.26 percent. At 1:04 p.m. in the options pits, 1,380,011 calls and 1,056,529 puts traded for a composite put/call ratio across all five exchanges of 0.76. The CBOE put/call ratio for equity options weighed in at 0.87.

Citigroup

International banking giant Citigroup (NYSE:C) is back in the news again today, with the company filing a vigorous defense in response to Parmalat claims rejection. In the filing, C stated that the Extraordinary Administrator's views were "unfounded and completely false," according to a Dow Jones Newswire report. While the news has the stock trading modestly higher today, C continues to struggle with short-term resistance at the 44.50 level. In fact, the equity's performance over the past several months has been lackluster at best. Since hitting a new annual high in April, C has given back more than 15 percent and posted two consecutive monthly closes beneath its 20-month moving average. Furthermore, the security continues to be hampered by its descending 10-week and 20-week trendlines, which are poised for a bearish cross. What's more, C continues to be a broad-market laggard, underperforming the SPX on a relative-strength basis since October 2003.

Click the following link to see the Weekly Chart of C since March 2004 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=11616&obspage=2 .

Sentiment indicators for the security range from complacent to bullish, painting a rather bleak picture for a near-term rebound. While options speculators have piled into C's November 45 puts in today's session, sending more than 6,200 contracts across the tape, the stock's Schaeffer's put/call open interest ratio (SOIR) has been relatively flat since October options expiration. More recently, the SOIR dropped from its October 28 reading of 0.99 in the 72nd percentile to its current perch at 0.94 in the 66th percentile. There is also the potential for a degree of options-related resistance lying just overhead for C, as more than 44,000 calls have taken up residence at the stock's November 45 strike. With the security's 10-week and 20-week already waiting at in this area, C could be in for a sharp rejection.

Meanwhile, short sellers decreased their positions by 16 percent over the past month, leaving investors with less than two days to cover their bearish bets. This lack of short-covering support leaves C vulnerable to a continuation of its recent downtrend. More disturbing, however, is the inordinate number of "buy" ratings being handed out by Wall Street analysts. According to Zacks, C has garnered 13 "buys," two "holds," and just one "sell" rating. Should this elated group of brokerages have a change of heart, the equity could be in for a rough downward spiral.

Finally, in an effort to place the spotlight on an emerging indicator here at Schaeffer's, C's proprietary Equity Scorecard, available to Schaeffer's Gold subscribers, persists at a considerably weak reading (see the chart below). With a mix of complacent to bullish sentiment framing a continued downturn for the security, it may be a while before C stages a meaningful rebound.

Click on the following link to see the Schaeffer's Equity Scorecard for C: http://www.schaeffersresearch.com/wire?ID=11616&obspage=2 .

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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 .