good stuff......reminds me of the old clique' "make hay while the sun shines" !!!!!!!!
IMO, one of JBL's biggest challenges is fighting the WAVE......a negative/longlasting one impacting the sector/broader market(s). BUT......."when the worm turns" !!!!!!!!!!!! :)
Schaeffer's Option Activity Watch Features GE, JBL, and MO
CINCINNATI, March 4 /PRNewswire/ -- Today's Schaeffer's Option Activity Watch features General Electric (NYSE: GE), Jabil Circuits (NYSE: JBL), and Altria Group (NYSE: MO). The Option Activity Watch is a report that takes a closer look at three equities appearing in our most unusual option activity report from the previous day. The Option Activity Watch is published on 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: http://www.schaeffersresearch.com/addinfo .
1. Business conglomerate General Electric (NYSE: GE) continues to fall from the good graces of traders as its stock price slips slowly in value. The number of put contracts at the equity's April 25 strike rose from 683 to nearly 6,000 overnight. Yet this usually bearish bet remains overwhelmed by the number of calls in the front three months of options. In fact, a total of more than 109,900 calls have accumulated at the out-of-the-money March 25 and 27.50 strikes. The security's Schaeffer's put/call open interest ratio (SOIR) sits at 0.58, which is lower than 82 percent of those taken over the past 52 weeks. In addition, the stock's short interest can be covered in less than two days at its average daily trading volume. Wall Street is still leaning toward the positive with the firm, as nine of the 15 analysts following GE rate it "buy" or better, according to Zacks. Technically speaking, the shares are facing overhead resistance from their 10-week and 20-week trendlines. The stock has enjoyed only three weekly closes above these moving averages since the end of March 2002. GE is also inching closer to its 52-week low of 21.30.
2. Optimism is building toward Jabil Circuit (NYSE: JBL). Its April 20 call added roughly 2,500 contracts overnight. What's more, calls nearly double puts in the front three months of options with an SOIR of 0.56. This reading is lower than 74 percent of those taken over the past year. Short interest for JBL also plunged 22 percent over the past month to 6.5 million shares. The opinion of brokerage firms is somewhat skeptical, with 11 analysts rating it a "buy" or better, 13 rating it a "hold," and one rating it an extremely rare "strong sell." JBL recently turned higher and is enjoying the support of its 10-day and 20-day moving averages. However, the road ahead isn't all wine and roses. Staunch resistance resides overhead at the 17.50 level. This area is home to peak front-month call open interest with 6,500 contracts. The 17.50 region is also the site of a 50-percent retracement of the equity's decline from January's peak (at 20.49) to February's low (at 14.51). JBL is also being capped by its declining 10-week moving average.
3. Call trading was also brisk at Atria Group's (NYSE: MO) April 42.50 call on Monday. This out-of-the-money option added 6,200 contracts to bring its open interest to 8,221. This call activity push to lower the stock's SOIR to its lowest reading of the past year. Furthermore, the number of MO shares sold short dropped nine percent over the past month. To add a little more optimistic sentiment to the mix, the Street remains smitten with the company, as seven of the 11 analysts following MO rate it a "buy" or better. The stock recently bounce off support at the 37 level, but must still overcome options- related resistance at the 40 level. More than 64,500 March calls have accumulated at this strike. In addition, former chart resistance sits at the 42 level. This build-up of optimistic sentiment and heavy technical resistance is a bearish signal from a contrarian point of view.
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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, 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: www.schaeffersresearch.com/method .
Contact: Tom Godich of Schaeffer's, +1-513-589-3800, pressrelease@sir-inc.com .
SOURCE Schaeffer's Investment Research
/CONTACT: Tom Godich of Schaeffer's, +1-513-589-3800, pressrelease@sir-inc.com /
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