 JNPR, JNJ & INTC Overcome Slow Session with Interesting Bullish Volumes…
Network
equipment maker Juniper Networks
(
JNPR |
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News |
PowerRating)
must not be dead yet as shares have seen heavy (43 million by 12:15 pm CT)
turnover and great price appreciation. That despite warning that 2001 earnings
and revenue will fall below expectations. The good news was threefold:
1) first-quarter revenue increased 420 percent to $332.1 million,
2) pro forma net income was up by more than seven-fold, and…
3) they didn’t miss Street estimates for their earnings.
I am still seeing heavy volume on the call side, helping keep the pressure on
the bears, as the market makers are forced to buy stock against the calls they
are selling. We’re tracking several 500-lot option blocks at the April 35
strike. The calls are already up from $9 to a bid of $14.20, a move of nearly
60%!
Next, it looked to us like someone waited a little long to roll up a covered
write in Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating). The institutional customer took the heat and bought back their shorts and
rolled them up 1 strike to the 90s. They bought 4900 JNJ April 85 calls for
6.50 and sold a like number of October 90 calls for $9. The good news for the
institutional customer is that they took in a net positive of $2.50, but had
to give up six months of time to get that done. Ouch!
Our computers are also showing bullish money flow into Intel
(
INTC |
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PowerRating), Micron
(
MU |
Quote |
Chart |
News |
PowerRating) & Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) options for the second straight session. The biggest standout
among those three is INTC, where a large customer bought 5000 January 27 ½
calls of 2002 for $5.30 on the AMEX. INTC was trading 26.63, so the timing was
quite good, as shares have rallied to $28.10, sending the Jan 27 ½ calls
rallying $1 to $6.30. That’s a quick $500,000!
| Symbol color:black”>
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Call
Volume PutVolume $WCall Vol $WPut Vol | INTC color:black”>
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25,92414,39260,74626,737 | MU color:black”>
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9,1699,50532,32716,914 | QCOM color:black”>
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16,1133,44069,51220,361 | JNJ color:black”>
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14,2892,857116,3023,854 | JNPR color:black”>
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20,72121,772170,31560,845(1010WallStreet.com has licensed the use of Hamzei Analytics proprietary options analytics) Gary |