Schaeffer's Option Bytes Features VERITAS Software, Bank One, Vishay Intertechnology, J.P. Morgan Chase, Advanced Micro Devices.

CINCINNATI -- Among the stocks featured in the June 30 edition of Schaeffer's Option Bytes are VERITAS Software (NASDAQ:VRTS), Bank One (NYSE:ONE), Vishay Intertechnology (NYSE:VSH), J.P. Morgan Chase (NYSE:JPM), Advanced Micro Devices (NYSE:AMD).

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=PROB1M&PAGE=1 Schaeffer's Option Bytes for Wednesday, June 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

2:02 PM Call Activity Strong on VERITAS

Call option activity on VERITAS Software (NASDAQ: VRTS) has increased dramatically relative to put option activity, as traders pin their hopes on a continued rebound in the shares after watching VRTS lose about 40 percent of its market value between January and May. Today's call option activity could lower the already low Schaeffer put/call open interest ratio on VRTS of 0.42, which is below 92 percent of all readings taken over the past year. Extreme optimism toward the stock may cause the shares to begin to struggle, as it indicates that available buying power for the stock may be waning.

1:43 PM Option Activity on Pending Merger

Options players are buying Bank One (NYSE: ONE) call options today in speculation over J.P. Morgan Chase's (JPM) pending takeover of the company. About 5,500 call option contracts have traded thus far on ONE, which is more than eight times the bank's average call option activity. The current offer is 1.32 shares of JPM for every share of ONE, which translates to a value of approximately $50.75 per share of ONE. This is a slight premium to the current market price of $50.68. JPM shares are currently trading at $38.45, up 16 cents.

1:22 PM A Big Call Purchase on Vishay Intertechnology

Vishay Intertechnology (NYSE: VSH) is the number three maker of passive electronic components (behind Murata Manufacturing and EPCOS) such as capacitors and resistors. It is also a top player in the market for discrete semiconductor (active) components including diodes and transistors, and makes power integrated circuits and optoelectronic components. VSH's components are used in everything from cell phones to cars to spacecraft. Today, the company has one of the most active calls on the Chicago Board Options Exchange (CBOE). Its August 20 call (VSH HD) had traded more than 10,200 contracts, over 10,100 of which have crossed on the CBOE. This volume is nearly 17 times the average daily volume of calls traded on VSH for all options with less than three months to expiration. The bulk of this volume came in one 9,900-contract trade at 9:54 a.m. eastern time. The trade executed at the ask price of 0.60, suggesting it was a purchase. Open interest is only 264 contracts so most of the volume should translate to new open interest. This appears to the bullish initiation of a long call position. VSH was trading at 18.25 at the time of this option trade.

10:40 AM Investors Add J.P. Morgan Chase Calls

Investors added calls on J.P. Morgan Chase (NYSE: JPM) at a brisk pace. Options players were particularly interested in the July 40 strike (JPM GH), as they added approximately 8,500 contracts. A closer look into the trading activity reveals that a large portion of it was concentrated in a block trade of 4,200 contracts that crossed just before 1:00 p.m. The trade went off at the ask, suggesting that the activity was a call purchase. Investors who purchase calls are bullish on the underlying security, and this particular trade essentially represents a bet that JPM will be trading above $40 by the time options expire in July. Today, the stock is up 22 cents to $38.51.

9:48 AM Pessimism Increases Toward AMD on All Fronts

Advanced Micro Devices (NYSE: AMD) has bounced back and forth between the 13.60 and 17.50 areas since mid-December. This is a pretty wide range for a lower priced stock, but it has hit the lower rail three times and it has hit the upper rail three times. During this time period, the Schaeffer's put/call open interest ratio (SOIR) and the short-interest ratio have headed in different directions. The SOIR was in a downtrend since last September, with a few spikes higher along the way. Recently, however, the SOIR has moved substantially higher. The current reading of 0.71 is higher than 74 percent of all those taken in the past year, but more importantly, it appears to have broken the downtrend. In yesterday's trading, the puts traded at a pace 4.1 times greater than the average trading day. There was a total of 22,644 puts traded and the July 15 strike was the most active with volume of 13,199. The short-interest ratio has been in an uptrend since last November and is currently perched at 7.18.

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.