Schaeffer's Option Bytes Features FedEx, Lowe's, R.J. Reynolds Tobacco Holding, Target, GlobalSantaFe.

CINCINNATI -- Among the stocks featured in the June 29 edition of Schaeffer's Option Bytes are FedEx (NYSE:FDX), Lowe's (NYSE:LOW), R.J. Reynolds Tobacco Holding (NYSE:RJR), Target (NYSE:TGT), and GlobalSantaFe (NYSE:GSF).

Schaeffer's Option Bytes are 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. 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 Tuesday, June 29, 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

1:54 PM Investors Bet on Pullback in FedEx

FedEx (NYSE:FDX) put option activity is quite heavy today, as options players are betting the stock will soon pull back from current levels. The stock has rallied of late, climbing 15 percent over the past month to reach new all-time highs. Thinking that the stock will be unable to sustain its recent strong performance, options players have increased put activity relative to call activity. The stock's Schaeffer put/call open interest ratio is now higher than two-thirds of the past year's readings. This type of pessimism amid an uptrend is exactly what could allow for more upside in the near term.

1:24 PM Traders Piling Up Calls on Lowe's

Lowe's (NYSE:LOW) call options are active today, adding to a trend of optimistic option activity on the home-improvement retailer. Thus far today, more than five times the average call volume for LOW has crossed the tape. There are already more than twice as many calls outstanding on the stock as there are puts, and the Schaeffer put/call open interest ratio for LOW is lower than 94 percent of all readings taken over the past year. Given the less-than-impressive price performance of the security over the past eight months, the high level of optimism could be a sign of further weakness in the foreseeable future.

11:32 AM Investors Increase Bearish Bets on R.J. Reynolds Tobacco Holdings

Puts traded actively on R.J. Reynolds Tobacco Holdings (NYSE:RJR) yesterday, causing its Schaeffer's put/call open interest ratio (SOIR) to jump 12 percent higher. Option activity reveals a bearish bias, as the SOIR currently stands at 1.39, with 111,100 puts to 79,700 calls outstanding in the front three months of activity. Like options speculators, short sellers also have a bearish bias toward the equity, as it would take more than six days to cover all the RJR shares sold short. Despite this skeptical view from investors, RJR has gained nearly 19 percent since the beginning of June. Today, it is trading up 57 cents to $67.42.

11:15 AM Target Warns of Weak Sales

After the market close Monday, Target (NYSE:TGT) warned that June same-store sales are likely to come in "well below plan." The company said that the weakness can be attributed mainly to weak sales of electronics and shoes. TGT also suffered from an analyst downgrade this morning. The stock has been a very strong performer, and investors are currently enamored with the company. This cheery sentiment could put more downward pressure on the shares, as a high level of optimism indicates that most investors are already fully invested in the equity. Options players currently hold 9,200 bearish puts to 33,300 bullish calls. Before this morning's downgrade, 71 percent of the 21 analysts covering TGT rated it a "buy," according to Zacks. At last check, TGT was trading off $2.19 to $41.85.

10:27 AM GlobalSantaFe Sees Unusual Call Volume

In Monday's trading activity, GlobalSantaFe (NYSE:GSF) saw its calls trade at a pace 6.5 times that of its average daily volume. There were a total of 10,523 calls traded and the July 25 strike was responsible for almost all of the volume, with 10,111 contracts changing hands. The Schaeffer's put/call open interest ratio (SOIR) continued its descent that started on June 24. The SOIR was at 0.38 and the percentile ranking was at 75.6 percent, but the numbers have dropped dramatically since then. The current reading of 0.17 has a percentile ranking of 9.6 percent. GSF has been in a declining channel since the beginning of March, and recently ran into resistance at the upper rail of the channel.

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

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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.