Netscape options..I am interested in purchasing some calls or puts,i am new to the option game, so i would like to hear some diffrent plays to use with the NSCP buyout rumors..thanks everyone
<<<Friday February 13, 6:33 pm Eastern Time
U.S. OPTIONS FOCUS/Netscape vols continue higher
CHICAGO, Feb 13 (Reuters) - Implied volatility in options on Netscape
Communications (NSCP - news) climbed higher on Friday amid growing
expectations that a bid is forthcoming, options experts said.
Larry McMillan, editor and publisher of Daily Volume Alert, said the takeover
rumors seemed to gain credibility after the company canceled an appearance at
a conference next week.
Though the shares fell 9/16 to 21-5/8, implied volatility on the options rose to
unprecedented levels, Joseph Sunderman, an options analyst with Investment
Research Institute, noted.
''With the stock in play as a takeover possibility by Sun Microsystems (SUNW
- news), Oracle (ORCL - news) and others, writing front-month
out-of-the-money puts on Netscape seem to be a good strategy to take
advantage of these pumped up premiums,'' he said
At-the-money implied volatility was up to around 88 percent, reflecting the
market's belief that the company will be taken over, he said. |
