Schaeffer's Option Bytes Features Lockheed Martin, Accredo Health, United Rentals, Siebel Systems, and Aeropostale.

CINCINNATI -- Among the stocks featured in the August 30 edition of Schaeffer's Option Bytes are Lockheed Martin (NYSE:LMT), Accredo Health (NASDAQ:ACDO), United Rentals (NYSE:URI), Siebel Systems (NASDAQ:SEBL), and Aeropostale (NYSE:ARO).

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 Monday, August 30, 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

10:25 AM Lockheed Martin Sees Calls Liquidated

Lockheed Martin (NYSE: LMT) calls were more active than usual on Friday, seeing 8.6 times their daily average volume, but the activity turned out to be a liquidation rather than new positions. The liquidation took place at the September 50 strike, and the Schaeffer's put/call open interest ratio (SOIR) jumped from 1.38 to 2.16 as a result. This is higher than 97 percent of those taken in the past year. LMT has been in an uptrend since mid-March, rising more than 20 percent in the past six months.

11:15 AM Accredo Health Lowers Earnings Outlook

This morning before the market open, Accredo Health (NASDAQ: ACDO) reported in-line earnings but lowered earnings estimates for fiscal 2005. The company lowered earnings estimates from $1.88-$1.93 per share to $1.45-$1.53 per share. The Reuters consensus was for earnings of $1.88 per share. The stock suffered an analyst downgrade following the lowered earnings expectations. Options speculators had been lining up bullishly ahead of the company's earnings report. Investors recently added ACDO calls at a brisk pace, causing the Schaeffer's put/call open interest ratio (SOIR) to trend lower. The current SOIR of 0.70 is lower than 95 percent of all readings taken over the past year. Low SOIR readings are indicative of investor optimism, as investors hold relatively more calls compared to puts. From a contrarian standpoint, optimism in the face of weak performance is a bearish indicator. At last check, ACDO was down $5.91 to $21.91.

12:52 PM High Put Activity on United Rentals

United Rentals (NYSE: URI) received news today that the Securities Exchange Commission (SEC) is launching a fact-finding probe into the company. The SEC noted that this is not an investigation of law-breaking activities. URI stocks have dropped more than 17 percent to its current perch of $16.90. The Schaeffer's put/call open interest ratio (SOIR) for URI stands at 0.60, which is higher than 92.8 percent of the readings taken over the past year, indicating underlying pessimism. Further adding to the pessimistic undertones, put options on URI today are trading nearly 15 times their daily average volume.

1:59 PM Heavy Activity on One Siebel Systems Put Option

Siebel Systems (NASDAQ: SEBL) has one put option that is particularly active today. The October 7.50 put (SGQ VU) is one of the most active options on the Pacific Exchange. The option has traded 2,500 contracts, all of which have crossed on the Pacific. The volume came in several large and small block trades at 10:10 a.m. eastern time. Most of the trades executed nearer the bid price at 0.35 and 0.40, suggesting sales. With open interest at that strike of just 320 contracts, most of today's volume should translate to new open interest. If so, today's activity could be the initiation of a new put sell positions. SEBL was trading at 7.70 at the time of the option trades.

2:21 PM Aeropostale May Not Be Finished Just Yet

Aeropostale (NYSE: ARO) is one retail company stock that is still in a very well-defined uptrend. However, ARO is off about five percent today amid heavy put option volume. Call activity on the shares is typically much more prevalent than put activity, but the tables have turned regarding today's session. Today's put volume is 68 times call volume. This inflow of pessimism may be a sign that the shares may soon resume their trend 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

Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day: http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU1M&PAGE=1.

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.