Schaeffer's Option Bytes Features Rambus, Maxim Integrated Products, Lyondell Chemical, Pixar Animation Studios, and eBay.CINCINNATI -- Among the stocks featured in the November 15 edition of Schaeffer's Option Bytes are Rambus (NASDAQ NASDAQ
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 :RMBS RMBS Residential Mortgage-Backed Securities
RMBS Rambus, Inc. (NASDAQ stock symbol)
RMBS Russian Mortgage-Backed Securities ), Maxim Integrated Products (NASDAQ:MXIM), Lyondell Chemical (NYSE NYSE
See: New York Stock Exchange :LYO LYO Lyondell Chemical Company (stock symbol)
LYO Lubavitch Youth Organization
LYO Louisville Youth Orchestra ), Pixar Animation Studios Animation studio can refer to:
Schaeffer's Option Bytes for Monday, November 15, 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=PROB PROB Probable/Probably
PROB People's Republic of Bangladesh 1C&PAGE=1
9:53 AM Options on Rambus Very Active
Options on semiconductor manufacturer Rambus (NASDAQ:RMBS) were very active on Friday. The calls saw 21,843 contracts change hands, which is 2.8 times the average daily call volume. On the put side, there were 6,606 contracts traded, three times the average daily put volume. When all was said and done, the Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio
SOIR Simultaneous Operations on Intersecting Runways ) changed very little. This jump in option activity was apparently spurred by the price action in the stock rather than a news story. In Friday's trading, RMBS moved above resistance at the 18 level on big volume. This price level had served as resistance on three occasions in the last five months, and prior to falling below 18, which served as support on a couple of occasions.
10:34 AM Maxim Integrated Products Sees Unusual Put Activity
Maxim Integrated Products (NASDAQ:MXIM) saw nearly three times more put volume on Friday than on an average day. A total of 8,803 contracts traded, with the December 45 contract seeing the greatest volume; 3,251 contracts. This was an apparent rollout from the November options to the December options ahead of November expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute.
2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created this Friday. The Schaeffer's put/call open interest ratio (SOIR) dropped slightly, from 1.19 to 1.12. MXIM has not participated in the broad market rally over the past few weeks; in fact the stock is down 4.3 percent since Election Day, whereas the Nasdaq composite The Nasdaq Composite is a stock market index of all of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market, meaning that it has over 3,000 components. It is highly followed in the U.S. is up five percent since Election Day.
11:28 AM Calls on Lyondell Chemical Trade Actively
Friday, calls traded actively on Lyondell Chemical (NYSE:LYO), as call volume was 6.4 times heavier than average. More than 10,000 contracts crossed the tape, with the most active being the January 20.00 strike (LYO AD). Investors exchanged nearly 8,300 LYO AD contracts Friday. A closer look into the activity reveals that most of the trades went off in small- and medium-sized blocks. However, a large block of 2,000 contracts traded at 1:34 p.m. This trade went off closer to the bid, suggesting the contracts were sold. A look at overall option activity on LYO shows that investors currently hold 58,100 calls compared to 107,900 puts in near-term activity. The resultant Schaeffer's put/call open interest ratio (SOIR) of 1.86 is higher than 94 percent of all readings taken over the past year. At last check, LYO was trading eight cents lower to $25.49 today.
12:13 PM Options on Pixar Trade Briskly brisk
adj. brisk·er, brisk·est
1. Marked by speed, liveliness, and vigor; energetic: had a brisk walk in the park.
Friday, options on Pixar (NASDAQ:PIXR) traded actively, as call volume was 5.4 times heavier than average and put volume was 4.8 times heavier than average. More than 15,500 call contracts changed hands, with the most active being the November 85.00 strike (PQJ KQ). Investors exchanged more than 3,000 PQJ KQ contracts Friday. Investors traded more than 7,800 put contracts, with the most active being the November 80.00 strike (PQJ WP). Nearly 3,000 PQJ WP contracts crossed the tape on Friday. A look at overall option activity on PIXR shows that investors currently hold 24,500 open calls compared to 21,100 open puts in near-term activity. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.86 is higher than 88 percent of all readings taken over the past year. Today PIXR is trading $5.09 higher to $91.58.
12:35 PM Heavy Call Selling on One eBay Option
eBay (NASDAQ:EBAY) has one of the most actively traded options in midday
See: American Stock Exchange ). Its out-of-the-money December 120 call (XBA XBA
The ISO 4217 currency code for the European Composite Unit (EURCO). LD) has traded slightly more than 9,100 contracts, more than 8,700 of which have crossed on the AMEX. Most of this volume executed as one 8,700-contract trade that crossed the tape at 10:02 a.m. eastern time. The trade went off near the bid price at 1.30, suggesting it was a sale. With open interest of just 1, 860 contracts, this could have been the initiation of a call sell position, possibly as part of a covered call Covered Call
Having a long position in an asset combined with a short position in a call option on the same underlying asset.
This is considered to be one of the safest option positions. strategy. EBAY was trading near 109.92 at the time of the option trade.
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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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.