Schaeffer's Option Bytes Features Nextel, Priority Healthcare, CKE Restaurants, Apartment Investment & Management, and Cisco Systems

Business Wire, Sept 13, 2004

CINCINNATI -- Among the stocks featured in the September 13 edition of Schaeffer's Option Bytes are Nextel (Nasdaq:NXTL), Priority Healthcare (Nasdaq:PHCC), CKE Restaurants (NYSE:CKR), Apartment Investment & Management (NYSE:AIV), and Cisco Systems (Nasdaq:CSCO).

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Schaeffer's Option Bytes for Monday, September 13, 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

1:56 PM Nextel Rebound Could Fizzle

Nextel Communications (Nasdaq:NXTL) call option activity is quite strong today; volume has reached five times its daily average call volume. This continues a trend of increasing optimism toward the security. The Schaeffer put/call open interest ratio (SOIR) for NXTL of 0.52 is below 84 percent of all readings taken over the past year. Extreme optimism could lead to a resumption of the intermediate-term downtrend, which began in January.

1:47 PM Heavy Put Buying on One Priority Healthcare Option

Priority Healthcare (Nasdaq:PHCC) distributes specialty pharmaceuticals and related medical supplies, specializing in alternative site distribution. PHCC has one of the most actively traded options on the Philadelphia Exchange (PHLX). Its in-the-money October 22.50 put (UHP VX) has traded over 5,200 contracts, all but three of which have crossed on the Pacific. 5,200 contracts executed in two 2,600-contract trades at 11:43 and 11:46 a.m. eastern time. Open interest is only 135 contracts, so today's volume should translate to new open interest. The trades went off close to the ask price at 2.15, meaning the trades look to be bearish put buying. PHCC was trading between 20.70 and 20.84 at the time of the option trades.

1:15 PM CKE Restaurants Miss Second-Quarter Expectations

CKE Restaurants (NYSE:CKR) have dropped more than 10 percent in today's action. The company that owns Carl's Jr. and Hardee's Restaurants is suffering from its second-quarter earning report issued this morning. Excluding items, CKR reported a profit of 17 cents per share, missing the mark of 20 cents per share set by the Street. This shortfall is attributed to charges incurred by the company for a settlement and to debt refinancing that affected the bottom line. Bulls bet heavily on the shares heading into the earnings report. CKR shows a Schaeffer's put/call open interest ratio of 0.26, which is lower than 60 percent of the readings taken over the past year.

1:13 PM Aimco is Under the Weather

Apartment Investment & Management (NYSE:AIV), also known as Aimco, has been continually battered by this summer's spate of hurricanes and tropical storms. On September 1, Aimco announced that Hurricane Charley and Tropical Storm Gaston damaged or destroyed 47 of its properties in Florida and Virginia. The damage done by Charley and Gaston caused AIV to lower its third-quarter earning estimate by two cents per share. Hurricane Frances did not cut AIV any slack either; the company announced that 71 of its properties in Florida and North Carolina sustained some sort of damage. The cost to repair 53 of these 71 properties comes in below AIV's third-party insurance deductible. Brokerage analysts and experts are not giving Aimco any relief, the equity was cut to "reduce" from "neutral." According to Zacks, AIV has received seven "hold" ratings, two "sell" ratings, and five "strong sells."

10:05 AM Calls on Cisco Systems Extremely Active

Friday's trading activity saw calls on Cisco Systems (Nasdaq:CSCO) trade at a pace 4.2 times its daily average. There were a total of 67,128 calls traded, with the most active option being the October 22.50 strike, on volume of 37,282. The Schaeffer's put/call open interest ratio (SOIR) dropped to a reading of 0.43, the lowest reading taken in the past year. Short selling is almost non-existent, as the short-interest ratio sits at 0.88, its lowest reading since February.

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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