Schaeffer's Midday Options Update Features Check Point Software Technologies, Pioneer Natural Resources, Tyco International, Marvel Enterprises, Vishay Intertechnology

The market it treading lightly today, as investors prepare themselves for remarks soon to be released from the Federal Open Market Committee meeting. The two pieces of economic data that were released this morning went largely ignored by the already pensive market. According to the Commerce Department, orders for factory goods jumped 4.3 percent in March, while shipments increased 3.8 percent. The increase in factory orders nearly doubled economists' expectations for a 2.2-percent rise. The Challenger Gray & Christmas jobless report was also released (and summarily overlooked), as U.S. corporations announced 72,184 job cuts in April, rising 6.1 percent from the 10-month low of 68,034 seen in March.

Merger and acquisitions news arrived before the market open this morning. Pioneer Natural Resources (NYSE:PXD) agreed to buy Evergreen Resources for $2.1 billion in cash and stock. The deal values EVG shares at $39 each, representing a four-percent discount based on Monday's closing price. EVG has also has agreed to sell its Kansas assets prior to closing the deal.

Turing to today's barrage of earnings, Tyco International (NYSE:TYC) posted a second-quarter profit of $782.4 million, or 37 cents per share, up from the six cents per share reported in the same quarter last year. The figure also slipped past the Street's view by a penny. Revenue rose 12 percent over the previous period to $10.04 billion. Looking ahead, TYC estimates earnings of 39-42 cents per share for the third quarter, and raised its 2004 forecast to $1.52-$1.58 per share

Marvel Enterprises (NYSE:MVL) continues today's earnings tide, gaining more than seven percent before midday after posting first-quarter earnings of $31.2 million, or 27 cents per share. While the numbers were down from the 38 cents per share reported last year, MVL bested the consensus estimate by six cents per share. The firm also boosted its 2004 guidance to 89-94 cents per share, up from previous guidance of 83-91 cents.

Rounding out our earnings coverage, Vishay Intertechnology (NYSE:VSH) posted first-quarter income of $35.9 million, or 20 cents per share. The numbers bested last year's profit of four cents per share, and topped the Street's view for earnings of 14 cents per share. Sales jumped 20 percent to $640.9 million, besting expectations of $618.7 million.

At 1:03 p.m. eastern time, the Dow Jones Industrial Average (DJIA - 10278.0) is down 0.35 percent and the S&P 500 Index (SPX - 1114.17) is lower by 0.29 percent. The Nasdaq Composite (COMP - 1935.6) is down 0.16 percent. At 1.04 p.m. in the options pits, 1,434,639 calls and 875,482 puts traded for a composite put/call ratio across all five exchanges of 0.61. The CBOE put/call ratio for equity options weighed in at 0.43.

According to Yahoo!Finance, Check Point Software Technologies (Nasdaq:CHKP) develops, markets, and supports Internet security and Virtual Private Network solutions. The sentiment picture for this technology concern is widely varied. Options players have sent 3,300 put contracts across the tape at the security's June 22.50 put today on open interest of 5,066. While this activity could indicate that pessimism is creeping its way back into CHKP's outlook, the stock's Schaeffer's put/call open interest ratio (SOIR) continues to fall. On Thursday of last week, the equity's SOIR checked in at 0.70 (in the 88th percentile). Since then, the ratio has slid to its current perch at 0.64 in the 69th percentile, indicating that options players are adding calls at a faster rate than puts in the front three months of options.

Optimistic sentiment (or at least complacency) appears to be on the rise from short sellers as well. Short interest decreased by three percent to 9.5 million shares during the month of April. While this indicator also points toward a rising bullish contingent, it would still take a healthy 3.65 days to cover this accumulation of bearish bets at the stock's average daily trading volume. Wall Street is also riding the fence on CHKP. Of the 25 analysts covering the security, 14 (or 56 percent) rate the shares a "buy" or better.

From a technical perspective, CHKP continues to tentatively advance along the support of its 10-week and 20-week moving averages, which the shares have yet to close a week below this year. The equity appears to be finding support in the 23 area, site of its 10-week trendline. The most disturbing piece of information to be taken away from CHKP's technical outlook revolves around the security's performance after announcing earnings on April 20. While the stock proceeded to rally after posting better-than-expected numbers and raising guidance for the second quarter, recent weakness in the shares has them trading back below staunch resistance at the 24 level. CHKP has battled this level for the past four months and has yet to post a monthly close above it.