Schaeffer's Option Bytes Features Apple Computers, Washington Mutual, Flextronics International, Anthem, and Harmony Gold Mining.

CINCINNATI -- Among the stocks featured in the October 14 edition of Schaeffer's Option Bytes are Apple Computers (Nasdaq:AAPL), Washington Mutual (NYSE:WM), Flextronics International (Nasdaq:FLEX), Anthem (NYSE:ATH), and Harmony Gold Mining (NYSE:HMY).

Schaeffer's Option Bytes are just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. Option Bytes are 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 Option Bytes for Friday, October 15, 2004:

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

2:05 PM Investors Add Calls on Apple Computer

Calls are trading briskly on Apple Computer (Nasdaq:AAPL) today, as call volume was 2.1 times heavier than average as of mid-day. Nearly 19,000 call contracts have crossed the tape so far today, with the most active being the November 47.50 strike (AAQ KW). Investors have exchanged more than 4,300 AAQ KW contracts. A closer look into the activity shows that the biggest trades took place around 10:30 a.m. this morning. At 10:36 a.m., 1,000 contracts traded at the ask, suggesting a call purchase. At 10:37 a.m., another 993 contracts traded at the ask. AAPL reported strong quarterly earnings results after the close on Wednesday. The stock has been in a strong uptrend since the beginning of the year. This option activity suggests that some investors are making bets AAPL will continue its strong run. At last check, AAPL was trading 15 cents higher to $45.14.

2:03 PM Washington Mutual Sees Heavy Call Volume

Owning Washington Mutual (NYSE:WM) stock has been a roller coaster ride for most of 2004 with the overall trend moving downward from the shares peak in November 2003. The situation may not be likely to improve anytime soon given that the stock has been attracting a high level of optimism from investors. Call option activity has been quite heavy, with more than 8,000 WM call contracts changing hands thus far today. The number of outstanding call positions on WM already more than doubles the number of put positions. Such a high level of optimism can indicate a lack of potential buying power necessary to drive the shares higher.

1:55 PM Puts Pile for Flextronics

Puts are trading actively today on Flextronics (Nasdaq:FLEX), as more than 4,600 contracts have crossed the tape thus far. As of mid-day, put volume was 5.1 times heavier than average, with the most actively traded put being the November 12.50 strike (QFL WV). A closer look into the activity in this contract shows that a block of 2,500 contracts traded above the ask price at 9:38 a.m., suggesting a put purchase. A look at overall option activity on FLEX reveals that investors currently hold 41,000 calls compared to 35,800 puts in near-term activity. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.87 is higher than all readings taken over the past year. Today, FLEX is trading a penny lower to $12.64.

1:41 PM More Upside for Anthem?

Put volume has increased dramatically on Anthem (NYSE:ATH) in the wake of recent scrutiny toward the insurance industry. Extreme pessimism, however, may help this stock to continue its momentum higher. Today's put volume on ATH is 13 times the average put volume for the security, and as of yesterday, the Schaeffer put/call open interest ratio (SOIR) on the stock had hit a level 90 percent higher than the past year's readings. To round out the pessimistic picture, short interest on the stock is quite high at 12.37 percent of the total share float. If the stock is able to hold above support at $80, we could see more upside for the future of this insurer, save of course a corporate scandal revealed.

11:58 AM A Little Harmony in Harmony Gold Mining Options Pit?

Heading up our list of most unusual option activity on both the call and put side yesterday, was Harmony Gold Mining (NYSE:HMY). Two 12,500 blocks traded yesterday on each the November 10 call and the November 10 put. It would appear that the out-of-the money November 10 put was written (sold to open) to offset the cost of purchasing (buy to open) the November 10 call. If this assumption is correct, the trader is anticipating that the pullback of the prior four sessions is about to terminate and the stock is poised for a move higher.

The above are just a few of today's Option Bytes. Click here to read all of today's Option Bytes. 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.