Schaeffer's Midday Options Update Features Ford Motor, Delphi, First Data, eBay, and Sirius Satellite Radio

Business Wire, Nov 28, 2005

CINCINNATI -- Today's Schaeffer's Midday Options Update features Ford Motor (NYSE:F), Delphi (NASDAQ:DPHIQ), First Data (NYSE:FDC), eBay (NASDAQ:EBAY), and Sirius Satellite Radio (NASDAQ:SIRI). The Midday Options Update contains a brief commentary on the day's most notable activity and a table listing the most-active calls and puts for the day.

The Midday Options Update is published every day at 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/redirect.aspx?CODE=PRMOU11M&PAGE=1 .

Options Update: Let's Get Sirius

Stocks went on the retreat this morning, as investors took their profits while they still could, a signal that some Streetfolk find the 11,000 level a little rich. The Dow Jones Industrial Average (DJIA) closed last week at an eight-month high, and commentators are beginning to suggest that the run came to soon, leaving stocks in an overbought state this week, in danger of slipping back before the December holidays arrive.

The National Association of Realtors calculates that sales of existing U.S. homes dropped by 2.7 percent in October, a signal that the housing bubble might have sprung a bit of a leak. After suitable seasonal adjustment, the annualized rate of sales fell to 7.09 million, from September's figure of 7.29 million. Analysts had forecast a decline to 7.20 million.

I went shopping this weekend, expecting to have a deeply miserable time, but the places that I visited turned out to be oases of tranquility. Thus, it surprises me to learn that Thanksgiving weekend sales in stores surge 22 percent on a year-on-year basis, to about $27.9 billion, according to the National Retail Federation. The average weekend shopper spent $302.81.

But You Still Can't Turn the Headlights Off

One of the car magazines published a two-page graphic that showed the alliances between all the global car manufacturers. Minis are German now, Land Rovers are American and, according to Hoover's, Nissans are 44 percent French. Today's news that Volvo is to shed 1,470 jobs around the world has particular importance in the U.S. because Volvos, though they're still blond, blue-eyed and Scandinavian, are part of Ford Motor's (NYSE:F) portfolio of interests. My screen was blood-red this morning, yet a quick glance at the automotive sector showed both F and General Motors (GM) edging ahead, though DaimlerChrysler (DCX) was in reverse.

Delphi High

Delphi (NASDAQ:DPHIQ), the troubled auto-parts supplier, has temporarily suspended a motion to reject labor agreements until January 20, 2006. The company plans to accelerate restructuring talks with former parent GM. In a gesture of support, GM has agreed to forego discounts.

A Second Chance at First Data

Henry Duques has been appointed chairman and CEO of First Data (NYSE:FDC), the e-commerce and payment-services company based in Colorado. On January 1, 2006, he will replace Charles Fote, who is to retire. This is noteworthy because Mr Fote's predecessor was none other than Mr Duques. FDC stock was up nearly five percent when I took a look this morning. "Priority number one, priority number two and priority number three" will be to "create shareholder value for 2006 and beyond," said the once and future leader.

eBay Bid Down Today

The U.S. Supreme Court has agreed to review a ruling between eBay (NASDAQ:EBAY) and MercExchange, a patent-holding company based in Great Falls, Virginia. In 2003, MercExchange was awarded $35 million (subsequently reduced to $25 million) in a dispute concerning sales and purchasing methods used by the Internet auction house. According to the Dow Jones Newswires, the issue is "whether a U.S. District Court should have issued a permanent injunction against online auctioneer" after it lost the patent-infringement case. A comment from the Business Software Alliance and other major technology groups goes a long way toward explaining EBAY's falling stock price today. "With a 'right' to an injunction, patent holding companies may have a decided advantage in bargaining power over the target technology companies providing goods and services to the public - a condition with significant negative implications."

Most-Active Options Update

At 2:23 p.m. eastern time, the Dow Jones Industrial Average (DJIA - 10,898.2) has lost 0.31 percent. The S&P 500 Index (SPX - 1,259.64) has dropped 0.68 percent, and the Nasdaq Composite (COMP - 2,242.9) has shed 0.89 percent. At 2:23 p.m. Eastern time, 2,592,739 calls have changed hands compared to 1,849,822 puts, equaling a single-day put/call volume ratio of 0.71. The CBOE's equity put/call volume ratio weighed in at 0.74.

Sirius Satellite Radio

Sirius Satellite Radio (NASDAQ:SIRI) hit the headlines on Friday when a research note from Banc of America suggested that the company's fourth-quarter revenue and subscriber guidance "could be at risk" because the promotional environment is worse than expected.