Schaeffer's Daily Market Blog Features: Charles Schwab, 3Com Corp., Computer Sciences, AMEX Oil Service HOLDRS Trust, and EMC Corp.CINCINNATI -- Among the stocks featured in the October 16 edition of Schaeffer's Market Blog are Charles Schwab Charles Schwab can refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SCHW SCHW Silver Chitin Handwraps (Everquest gaming) ), 3Com Corp. (NASDAQ:COMS COMS 3Com Corporation (stock symbol) COMS Certified Orientation and Mobility Specialist COMS Continuous Opacity Monitoring Systems COMS City of Manchester Stadium (UK) ), Computer Sciences (NYSE NYSE See: New York Stock Exchange :CSC), AMEX AMEX See: American Stock Exchange Oil Service HOLDRS Trust (AMEX:OIH OIH Office of International Health OIH Ohio Industries for the Handicapped, Inc. ), and EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Corp. (NYSE:EMC). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB PROB Probable/Probably PROB Problem PROB People's Republic of Bangladesh 13M&PAGE=1 . Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/. 10:07 AM Schwab Falls Despite Strong Earnings This morning, Charles Schwab (NASDAQ:SCHW) announced third-quarter earnings of $266 million, or 21 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , as sales increased 13 percent to $1.29 billion. Analysts had predicted a profit of 20 cents per share with revenue of $1.29 billion. Heading into the earnings report, it appears that option players had somewhat high expectations for the security. On Friday, open interest at the stock's October 17.50 call popped from 5,112 to 6,134 contracts. Furthermore, this strike is the site of peak call open interest in the front-month series. Meanwhile, open interest at the security's October 17.50 put increased from 2,810 to 3,630 contracts. In early trading this morning, the shares are down nearly two percent. 10:53 AM SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways Jumps for 3Com A put/call open interest ratio is simply the ratio of total put open interest to total call open interest. We compute Schaeffer's put/call open interest ratio (SOIR) based on open interest in the front three months only. These near-term options tend to attract a more speculative crowd, the sentiment of which is more useful for shorter-term trading. One of the filters available in our Schaeffer's Plus is the Daily SOIR Changes filter, which lists the stocks that save the largest percentage jump in their SOIR overnight. In the table on the blog On The Blog is a British radio comedy series that was first broadcast in May/June 2007 on BBC Radio 2. It starred Andy Taylor as the nerdish wargaming blogger Andrew Glasgow who was the central character of the series. , I have listed the top-10 stocks that saw the largest increase in their SOIRs. From the list, I was caught by the jump in 3Com Corp.'s (NASDAQ:COMS) SOIR from 0.14 to 0.26. In trading on Friday, open interest at the stock's November 5 put increased by roughly 4,000 contracts to total 5,847 contracts. However, call open interest still easily outweighs put open interest at this strike, as more than 22,000 contracts reside at the November 5 call. 1:03 PM Computer Sciences Upgrade Squeezes Short Sellers Computer Sciences (NYSE:CSC) short sellers could be getting the snot snot n. Nasal mucus; phlegm. squeezed out of them today, as the shares surged more than four percent after Prudential Equity Group upgraded the shares this morning. "We see many strong positives starting to happen at the company which are making the future look bright," the brokerage firm noted, lifting its rating on the security to "overweight" from "neutral" while raising its price target to $67 from $56. Currently, more than 6.5 percent of CSC's float is sold short, and it would take nearly nine days to buy back these bearish bets at the stock's average daily trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. . The equity took out long-term resistance at the round-number 50 level on the gap higher - a level that CSC has not traded above since August 2004. This region could give the security some support from which to rebound higher, putting additional strain on the short-selling community. 1:14 PM Oil Service Sector Continues to Look Vulnerable The AMEX Oil Service HOLDRS Trust (AMEX:OIH) has run into some resistance at its 10-week moving average near 131. This moving average has served as a major downward trendline for the exchange-traded fund (ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). ) since it began its descent back in early May. Call option activity on the ETF has outpaced put activity, as the Schaeffer put/call open interest ratio on the trust is now below 95 percent of the readings taken during the past year. Too much optimism may be reason to believe that the downtrend downtrend A series of price declines in a security or the general market. Many analysts feel that investors should avoid securities in a downtrend until the pattern is broken. Compare uptrend. will remain intact at least for the near term. 2:15 PM EMC Sees Heavy Call Trading EMC Corp. (NYSE:EMC) has been the focus of some heavy call trading this afternoon. The stock's October 13 call has seen more than 6,600 contracts cross the tape on open interest of nearly 16,000 contracts. The vast majority of this volume traded in small blocks throughout the day. Meanwhile, the equity's November 13 call has seen nearly 6,000 contracts change hands on open interest of roughly 8,500 contracts. Around 12:35 p.m. Eastern time, a block of 1,000 contracts and a block of 1,500 contracts traded at 0.43, which was between the bid price of 0.40 and the ask price of 0.45. Then, a block of 2,500 contracts traded at a price of 0.42, between the same bid and ask prices. Technically speaking, the 13 region could continue to cap the shares. Not only will an accumulation of calls at this strike provide a layer of options-related resistance, but the 13 area is also the site of former technical resistance for the shares. For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&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 and get entered to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&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 . |
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