|
US OPTIONS FOCUS/Speculation in Micron, Morris up
Reuters, Monday, June 16, 1997 at 15:50
CHICAGO, June 16 (Reuter) - Speculation in Micron
Technology Inc (NYSE:MU) and Philip Morris Cos Inc (NYSE:MO)
increased on Monday for two distinctly different reasons,
traders said.
Speculation in Micron was related to its quarterly earnings
report, due after the close of trading, and in Philip Morris to
a possible tobacco industry deal this week with several states
attorneys general, traders said.
"It's all a play on what they say this afternoon," Rob
Kovell of Kovell Trading LP said of Micron options activity on
the Pacific Stock Exchange.
In late trading, Micron shares were up 1-1/4 at 42 on
volume of more than 2.5 million shares.
Among the options, the June 42-1/2 call was most active,
with total turnover of 3,570 contracts. The June 40 puts traded
about 3,525 and the June 40 call about 2,855.
"We've had a good deal of put buyers probably speculating
on bad numbers after what Intel (NASDAQ:INTC) said," Kovell said.
He added that over the last couple of weeks one investor
had been a large buyer of the June 40 puts, which had open
interest of 18,055 contracts.
At the end of May, Intel said its second quarter earnings
would fall short of Wall Street expecations, largely because of
weaker-than-expected demand, especially in Europe.
Kovell said Micron's actual earnings number--Wall Street
analysts are forecasting on average profits of $0.39 a share,
up from $0.27 in the year ago quarter--will not likely be as
important as any comments the company makes.
"I think the most important thing to look at when the
number comes out is what they have to say about demand," he
said, adding that the stock appears to have room on both the
downside and the upside.
Implied volatility in Micron options remained high, in the
upper-60 to low-70 region, but down about 10 points from the
levels reached when the investor was heavily buying the June 40
puts, Kovell said.
rest of story at fast.quote.com |
