Schaeffer's Option Activity Watch Features GlobalSantaFe, Paychex, Symantec.

Business Editors

CINCINNATI--(BUSINESS WIRE)--April 5, 2004

Today's Schaeffer's Option Activity Watch features GlobalSantaFe (NYSE:GSF), Paychex (NASDAQ:PAYX), and Symantec (NASDAQ:SYMC). The Option Activity Watch is a report that takes a closer look at three equities appearing in our most unusual option activity report from the previous day. The Option Activity Watch is published on 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 Option Activity Watch:

1. Oil companies continue to garner the interest of traders, particularly with OPEC deciding to stick to its original plan of trimming its oil-production quota by one million barrels per day. One stock drawing some attention is GlobalSantaFe (NYSE:GSF). On Friday, the firm announced that is was selling its land drilling assets to Precision Drilling for $316 million in cash. The deal, which is expected to close in the second quarter, includes 31 land drills in the Middle East, North Africa, and South America.

Investors have shown a preference for calls (bullish bets) over puts (bearish bets) when it comes to GSF. The equity's Schaeffer's put/call open interest ratio (SOIR) sits at 0.32, indicting that existing call positions more than triple open put positions. In addition, more than half of all daily SOIR readings taken over the past year were higher (more bearishly configured) than the current ratio. What's more, the number of GSF shares sold short (a bearish technique) plunged by 19 percent in March to 5.3 million. With a short-interest ratio of only 2.58 days to cover, it is unlikely the security will benefit from a short-squeeze situation. Only Wall Street is firmly against the company. According to Zacks, six analysts rate GSF a "buy" or better, 12 rate it a "hold," and four rate it a "sell." Any upgrades could give the security a boost.

Technically speaking, the shares have trended lower under resistance at their 10-day and 20-day moving averages. The equity is moving closer to a 50-percent retracement level (at 25.79) from its rally off its November low (at 20.89) to its March high (at 30.69). These retracement levels often serve as a layer of support. Potential support also lies at the security's 20-week moving average at the 26.50 level. This region could prove to be key for the shares. A break through these support levels could shake loose some of these bulls, creating a rise in selling pressure. However, a rebound could push some of the brokerage firms into upgrading the shares.

Click the following link to see the Weekly Chart of GSF since October 2003 with 20-Week Moving Average:

http://www.schaeffersresearch.com/wire?ID=9832 .

2. Paychex (NASDAQ:PAYX) provides payroll processing, automatic tax payment, direct deposit, automatic tax payment, and wage garnishing services. The stock gapped higher on Friday and succeeded in closing above its 20-week moving average for the first time since the end of January. In fact, the stock has rallied along its 10-month moving average for the past year, with only one monthly close below this trendline. The shares are down today as investors digest the equity's latest gains.

Not surprisingly, optimism is running high toward the security. PAYX has a SOIR that is lower than 83 percent of all those take over the past 52 weeks. Furthermore, the stock's short-interest ratio sits at a paltry 2.02 days to cover. We typically view readings above three as a sign of pessimistic investor sentiment. Meanwhile, the Street is entrenched in the bears' camp. Zacks reported that 19 of the 24 analysts following the company rate it a "hold" or worse. Any upgrades could help to prolong the security's rally.

Click the following link to see the Monthly Chart of PAYX since October 2002 with 10-Month Moving Average:

http://www.schaeffersresearch.com/wire?ID=9832 .

3. Optimism is finally on the rise toward Symantec (NASDAQ:SYMC). The security has soared higher along its 10-week and 20-week moving averages since July and continues to hang out in new all-time high territory. It is only now that we are beginning to see signs of growing optimism. On Friday, the stock saw a surge in call activity, with more than 7,000 contracts being added to its May 50 strike. This caused the equity's SOIR to drop from 1.23 (in the 91st percentile) to 1.04 (in the 62nd percentile). However, this is still a relatively high reading for the stock. Furthermore, short interest inched five percent lower in March to 19.1 million shares. Yet, with a short-interest ratio of 4.06 days to cover, the stock may still see some more short-covering support. Wall Street is enamored of the company, with 21 of the 29 analysts following SYMC rating it a "buy" or better. A continuation of SYMC's rally could force more of the short sellers to unwind their positions in the form of additional buying pressure.

Investors should also keep an eye out for SYMC's earnings report, which is scheduled for April 28. According to Zacks, analysts are forecasting a profit of 34 cents per share, crushing profits of 23 cents per share for the same period a year ago. What's more, SYMC has surpassed the consensus estimate for the past five quarters by an average of 14 percent. Another positive report could also work to convert the last of the bears.

Click the following link to see the Weekly Chart of SYMC since April 2003 with 10-Week and 20-Week Moving Averages:

http://www.schaeffersresearch.com/wire?ID=9832 .

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

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is 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 .