Schaeffer's Midday Options Update Features Target, AstraZeneca,

Cambridge Antibody Technology, Elan, and Biogen Idec 
Today's Schaeffer's Midday Options Update Target
(NYSE:TGT), AstraZeneca (NYSE:AZN), Cambridge Antibody Technology
(NASDAQ:CATG), Elan (NYSE:ELN), and Biogen Idec (NASDAQ:BIIB). 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 - 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
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Options Update: Trading with Elan 
The Dow Jones Industrial Average (DJIA) is attempting to make
gains today, but it has been firmly rebuffed by resistance at its
20-day moving average. It looks likely that we'll end the day in the
red, and there might even be a 50-point drop in the Dow. 
In economic news, the New York Manufacturing Index fell to a
reading of 12.36 from 15.81 in April. Economists had expected a
reading of 17.0. Meanwhile, the Treasury Department announced that net
foreign purchases of U.S. securities fell by 23 percent from February,
to total $69.8 billion in March. Wall Street expected net foreign
purchases of $74.7 billion. 
Missing the Target 
This morning, Target (NYSE:TGT) reported a rise in first-quarter
profit to $554 million, or 63 cents per share, from year-ago figures
of $494 million, or 55 cents per share. The results missed the
consensus estimate by a penny. Revenue showed a 12-percent increase to
$12.86 billion while same-store sales gained 5.1 percent. At last
check, the stock was down almost four percent at $50.14. 
AstraZeneca Goes to Cambridge 
AstraZeneca (NYSE:AZN) announced that it will buy the remainder of
British pharmaceutical-research firm Cambridge Antibody Technology
(NASDAQ:CATG) that it does not already own. Based on the figures, AZN
sets an overall value on CATG at around $1.33 billion. CATG employs
about 290 people in the U.K. and at its new site in Palo Alto,
California. CATG gapped higher this morning and at last check, the
stock was up 64 percent on the day, hitting its highest level since
January 2002. 
Winn Losses Widen 
Food retailer Winn-Dixie Stores (WNDXQ) posted a first-quarter net
loss of $30 million, or 21 cents per share, compared with year-ago
figures of a $13.4 million loss, or nine cents per share, a year
earlier. Net sales increased to $1.8 billion from $1.7 billion for the
year-ago period. The stock was up five percent at last check. 
Most-Active Options Update 
At 2:38 p.m. Eastern time, the Dow Jones Industrial Average (DJIA
- 11,372.3) has lost 0.08 percent. The S&P 500 Index (SPX - 1,288.77)
is 0.19 percent lower, while the Nasdaq Composite (COMP - 2,228.3) is
0.69 percent lower. At 2:38 p.m. Eastern time, 3,574,919 calls have
changed hands compared to 3,773,465 puts, equaling a single-day
put/call volume ratio of 1.05. The CBOE's equity put/call volume ratio
weighed in at 1.11. 
Not so very long ago, Elan (NYSE:ELN) and its partner Biogen Idec
(NASDAQ:BIIB) were making headline news every day, thanks to woes
concerning Tysabri, a drug that the two firms developed to fight
multiple sclerosis. 
ELN is the talk of the Street today thanks to some heavy trading
at its May 10 call (ELN EB) and June 12.5 call (ELN FV). That May 10
call had open interest of 20,555 contracts before the bell, and 19,365
contracts had traded by the time we grabbed our figures for this
piece. A strikingly similar number of contracts of the June 12.5 call
traded, too. Volume was 19,645 and, since open interest at the start
of the day was just 1,390, that figure is almost certain to change by
the time all of today's transactions are netted up. 
From a technical perspective, the stock has mounted quite a decent
recovery during the past 12 months, although there are signs of
resistance at the 15 level. Nevertheless, the 10-week and 20-week
trendlines appear to be situated to lend support and guide the stock
gently higher. 
Let's take a fresh look at ELN's sentiment backdrop, something
that I don't think we've written about recently: 
--  Percent of analysts tracked by Zacks who rate the stock with a 
"hold" or worse: 100% 
--  Number of analysts tracked by Zacks: 6 
--  Short-interest ratio: 5.43 
--  Schaeffer's put/call open interest ratio (SOIR): 0.60 
--  SOIR percent rank: 22 
--  Overall Schaeffer's Equity Scorecard rating: 7.5 
There is plenty of negativity from the brokerages, which is
starting to encourage me, because the stock is advancing. It does not
make sense to remain forever negative about a stock that has gained
more than 440 percent in 12 months. Upgrades could be on the cards,
and they would do ELN no harm at all. 
Short interest also provides reason to like ELN. There is fuel
here for a short-covering rally. There is nothing right now to trigger
such a rally, but it's good to know that some fuel is there. 
On our Schaeffer's Equity Scorecard, the stock earns 7.5 out of
10, suggesting that the path of least resistance lies to the upside.
ELN fell dramatically last year, but that should not cloud your
judgment. This could be a stock to watch and learn about. 
Click here to see a Weekly Chart of ELN Since April 2005 With
10-Week and 20-Week Moving Averages: . 
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Schaeffer's Investment Research, founded by Bernie Schaeffer in
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Jocelynn Drake, 513-589-3800
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