Schaeffer's Option Activity Watch: 1. According to Hoover's, Albertson's (NYSE:ABS) is the number two supermarket chain in the United States, operating approximately 2,300 stores in 31 states. This Fortune 500 company has been the site of growing pessimism recently. The equity's January 20 put added more than 4,100 contracts overnight, pushing open interest up to 6,072 contracts. The stock's Schaeffer's put/call open interest ratio (SOIR) checks in at 1.20, as puts outnumber calls in the front three months of options. This reading is now higher than 63 percent of those taken over the past year. In addition, the security's short-interest ratio sits at a hefty 10.3 days to cover, raising the chances of a covering rally boosting the shares. Of course, the equity's recent technical performance hasn't been setting any records. ABS has been trending sideways since March between resistance at the 22 level and support at 18. Additional overhead resistance rest at the stock's declining 20-month moving average. This trendline has capped all of the security's monthly closes since June 2002. Traders should key in on these levels. A break through overhead resistance could send the bears running for the exit.
You are welcome. There are critical talks this week between the grocers and the union reps. The pressure is building....on both sides.
Yeah surf....We here in California must walk through the picket line if we want to shop there. It seems that they are losing steam....but the teamsters stepped into help by stopping their trucks. I think Albertsons might be holding out for the 90 day clause that permits them to hire permanent replacements. They have been on strike for over 60 days over a decrease in their health insurance benefits. I do not believe either side calculated with this long of a strike...but perhaps Albertsons did! It seems to me they are unwilling to negotiate and find it necessary to get rid of the union to compete long term with the likes of Costco, Sams Club and other non-union membership type of operations. Michael B.
being a costco client, i had no clue. there are albertson owned grocery chains here, but they are not on strike, as far as i know. thanks for the info, surfer
I am losing patience with the strikers. They claim that Albertson's is out to screw them, but they are not being realistic. The issue is over health care co-payments. If you look at the entire group of grocery stocks, ABS, KR, and SWY, you will see they are all off significantly from the 1999/2000 highs. Why? Because WalMart and Costco are selling grocery items. This has really hurt the grocers, as they can't compete on price. The cost of health care has skyrocketed, and the grocers are saying that now the workers have to make a co-payment. Is that really so unfair?
ABS gapped up above small downtrend line, traded up to larger downtrend line. Volume good today, MACD turning up, as is RSI.