Subject: [NEXTEL-1] Schaeffer's Midday Options Update for Thursday: Nextel Calls Soar

From: Marcel <[email-masked]>
Date: Thu, 13 Feb 2003 20:28:31 -0500

Schaeffer's Midday Options Update for Thursday: Nextel Calls Soar
By Jocelynn Drake ([email-masked])

2/13/2003 1:42 PM ET
<Snip>

Nextel Communications (NXTL:
http://www.schaeffersresearch.com/streetools/sentiment_brief.asp?Ticker_symbol=NXTLsentiment,
chart, options) continues to see heavy trading at its February 12.50 call. This
out-of-the-money option has seen more than 5,100 contracts change hands this afternoon.
However, with open interest of roughly 22,000 contracts, we will have to wait until
tomorrow to see if all these contracts translate into new positions. Optimism has been
growing toward this security recently. NXTL's Schaeffer's put/call open interest ratio
sits at 0.33, as calls triple puts in the front three month of options. This reading is
lower than all but six percent of those taken over the past 52 weeks. In addition, the
equity's short interest has been steadily declining. Since September, the number of NXTL
shares sold short has plunged 32 percent to 75.9 million shares. Only Wall Street remains
skeptical of the company. According to Zacks, eight analysts rate it a "buy" or better, 15
rate it a "hold," and four rate it a "sell."
Technically speaking, the shares have been consolidating into support at their rising
20-week moving average. However, heavy resistance resides overhead at the 15 strike. Not
only is this the site of former support, but it is also the site of peak front-month call
open interest with nearly 25,000 contracts. If NXTL fails to take out resistance at this
level, investors may begin to abandon the shares.

http://www.schaeffersresearch.com/sentiment/observations.asp?ID=7109

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