Schaeffer's Midday Options Update Features Cisco Systems, Siebel Systems, Intuit, Adobe Systems, BEA Systems, H.J. Heinz, Take-Two Interactive Software.

Business Editors

CINCINNATI--(BUSINESS WIRE)--Sept. 3, 2003

Today's Schaeffer's Midday Options Update features Cisco Systems (NASDAQ:CSCO), Siebel Systems (NASDAQ:SEBL), Intuit, Adobe Systems, BEA Systems (NASDAQ:BEAS), H.J. Heinz (NYSE:HNZ), and Take-Two Interactive Software (NASDAQ:TTWO). The Midday Options Update contains a brief commentary on the day's most notable activity and a table listing the most active calls and puts for the day. The Midday Options Update is published every day at 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. Each new subscriber will receive a FREE copy of Bernie Schaeffer's Options 101 CD-ROM (a $49.95 value). http://www.schaeffersresearch.com/addinfo.

Schaeffer's Midday Options Update

The market is spending the afternoon basking in the light of another positive day. July construction spending rose again, climbing 0.2 percent while June was revised higher to 0.7 percent. Some positive earnings news has also helped to boost spirits. H.J. Heinz (NYSE:HNZ) reported first-quarter earnings that met the Street estimate and reaffirmed its 2004 earnings forecast. Take-Two Interactive Software (NASDAQ:TTWO) posted a third-quarter profit of 18 cents per share, beating the Street estimate by a penny per share. The firm raised its 2004 earnings estimate and announced plans to acquire TDK Mediactive in a deal valued at $22.7 million.

Analysts have also been busy today with several upgrades hitting the wire. CS First Boston upgraded the enterprise software sector from "market weight" to "overweight" on the belief that discretionary spending by businesses will improve over the next 12 months. Siebel Systems (NASDAQ:SEBL) was upgraded from "neutral" to "outperform," while the price targets were raised for Intuit, Adobe Systems, and BEA Systems (NASDAQ:BEAS).

At 1:17 p.m. eastern time, the Dow Jones Industrial Average  (DJIA - 9572.4) is down 0.51 percent and the S&P 500 Index (SPX - 1027.05) is up 0.50 percent. The Nasdaq Composite (COMP - 1860.5) is higher by 1.03 percent. At 1:21 p.m. in the options pits, 1,710,201 calls and 999,513 puts traded for a composite put/call ratio across all five exchanges of 0.58. The CBOE put/call ratio for equity options weighed in at 0.46.

Cisco Systems (NASDAQ:CSCO) CEO John Chambers succeeded in heating up trading this afternoon. He stated that the company continues to see signs of market recovery and that CSCO will continue to buy back shares. The firm saw better-than-expected orders in August, but remains unsure if this level is sustainable. Options players are grabbing up contracts on this stock as quickly as possible. Calls have been the most active, with more than 43,200 contracts changing hands on its September 20 strike, 24,300 on its October 20 strike, and another 9,200 on its October 22.50 strike. Puts aren't being completely left out, as more than 22,600 contracts have crossed the tape on its September 20 strike.

Overall, optimistic sentiment toward the technology stock has been steadily rising. Its Schaeffer's put/call open interest ratio has dropped from 0.68 on August 6 to its current reading of 0.48. In addition, short interest plunged 17 percent over the most recent reporting period to 88.8 million shares. This is less that two times its average daily trading volume. Wall Street was even buoyed by the announcement. One brokerage firm upgraded CSCO from "buy" to "strong buy."

Technically speaking, the stock gapped higher on the news and is now at its highest level since January 2002. In fact, CSCO is sitting above the 20 level for the first time in more than a year and a half. Support from its 10-week moving average is also helping to lift the shares higher.

Click the following link to see the Weekly Chart of CSCO since September 2002 with 10-Week Moving Average: http://www.schaeffersresearch.com/wire?ID=8379 .

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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 .