It sounds to me like people can't make up their minds what is going to happen.
Stock Portfolios Headlines
BIRMINGHAM, Ala.--(BUSINESS WIRE)--March 6, 2001--Tuesday activity in U.S. equity options increased significantly over Monday's levels, as players scrambled to position in the face of rising tech stocks. Although "bullish" sentiment persisted throughout the session, skepticism was noted in the form of covered call selling and protective put buying. Stockwinners.com uses clues provided by institutional options trading to successfully enhance the performance of its various equity portfolios. So far this year, action in the options market helped selection of Momentum Portfolio stocks that added an average 15% in seven days. Top picks were up over 60 percent. Among the recent portfolio additions was Check Point Software (NASDAQ: CHKP).
In specific action on Tuesday, heavy call option purchasing was noted on shares of Taiwan Semiconductor (NYSE: TSM). The April $22.50 strike generated the most interest, as nearly 4,000 contracts were bought mid-morning.
Elsewhere, options were active on shares of Palm (NASDAQ: PALM). Volume increased dramatically around noon, with multiple 1,000 contract block transactions taking place on the March $17.50 strike. Several groups were purchased. In mid-afternoon, reports surfaced that Palm may acquire Extended Systems. Note that at 10:00 a.m. on Wednesday, Palm will be presenting at the Morgan Stanley Semiconductor and Systems Conference.
Put options on BEA Systems (NASDAQ: BEAS) were noticeably heavy on the March $35 strike. The action was mixed however, with both buyers and sellers in the crowd. One investor sold 5,000 contracts just before noon, with another buying 1,200 contracts in mid-afternoon. This type of trading suggests a lack of consensus concerning the prospects for the stock.
In a defensive move, heightened call option selling was observed on shares of Micron Technology (NYSE: MU). Specifically, the April $40 calls were active, with one trader dumping a block of 2,500 contracts mid-morning. Shares of Micron have gained over 20 percent during the last four sessions.
This report has been reviewed and verified by Melanie Lambert, CFA. "Stock returns were based on the prices at the times the issues were recommended and maximum prices within 23 days," said Lambert. Stockwinners.com offers real-time updates on option activity through its ActiveTraders page and E-Mail alerts. Additional services include real-time quotes, daily stock picks, daily option picks, pre-market/post-market prices and a Rumor Mill. Free two-week on-line trial subscriptions to the STOCKWINNERS.com service are available at stockwinners.com. The company may be reached at 800/946-7143. |
