U.S. Options-Cabletron volume jumps, vols stay up
Reuters, Feb 9, 2000 16:08 hrs
CHICAGO, Feb 9 (Reuters) - Options volume rose sharply and implied volatility remained firm Wednesday for No. 4 computer networking maker Cabletron Systems Inc. (NYSE:CS) as the stock rose on a wave of bullish sentiment on technology issues, traders said.
"There are a lot of call buyers. There have been 400-500 lot buyers. We have had some put sellers in the front months," said a designated primary market maker (DPM) at the Chicago Board Options Exchange.
The DPM cited strong interest in technology issues for the boost in Cabletron's options volume and call activity and said there was no specific news on the company.
Cisco Systems Inc. (NASDAQ:CSCO), the world's biggest Internet equipment maker, sparked a small rally on the Nasdaq market early Wednesday after posting second-quarter profits ahead of analyst estimates and setting a 2-for-1 stock split.
At 10:52 am CST (1652 GMT), February 30 calls were up 7/8 to 3-1/2 on the CBOE on interexchange volume of about 4,525 and open interest of 11,227.
On the flip side, February 30 puts were off 1/4 to 7/8 on total exchange volume of about 292 and open interest of 550.
Combined volume on the American Stock Exchange, CBOE and Philadelphia Stock Exchange early Wednesday was listed at around 10,670 contracts, which included 9,641 calls and 1,029 puts, up from its recent daily average of 5,135.
On Tuesday, 10,286 contracts changed hands, which included 9,460 calls and 826 puts.
The DPM also noted the implied volatility for February 35 calls stayed high at around 89 percent, up 2 to 3 percentage points from last week.
Shares of Cabletron Systems were up 1/8 to 31-3/4 on New York Stock Exchange volume of 2.5 million. chicago.derivatives.newsroom@reuters.com))
Copyright 2000, Reuters News Service
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