US OPTIONS/Agouron vols spike as stock stumbles
Reuters, Tuesday, June 30, 1998 at 20:23
CHICAGO, June 30 (Reuters) - Implied volatility on Agouron
Pharmaceuticals Inc. (NASDAQ:AGPH) options spiked on Tuesday as the
stock stumbled to its lowest level in almost six months amid
concerns about the fate of its anti-AIDS drug, traders said.
Volatility traded as high as 70 percent, up from its
average of around 48 percent, they said, as the stock shed
3-1/16 to close at 30-5/16.
Traders said sentiment for Agouron soured as Abbott
Laboratories Inc.'s (NYSE:ABT) protease inhibitor Norvir got a
good reception at the 12th World AIDS Conference in Geneva.
Activity in Agouron options was brisk on the American Stock
Exchange and on the Chicago Board Options Exchange, with
volumes well above average. Combined call volume outpaced put
volume 2,773 to 1,451.
"Between the two exchanges, 800 contracts would be a good
day," a market maker said.
In other trading, puts on Nike Inc. (NYSE:NKE) options were
well bid as traders awaited the release of the sports apparel
group's fiscal fourth quarter results, which were released
after the market closed.
Implied volatility moved into the high end of its recent
range as the stock shed 11/16 to close at 48-11/16 on the New
York Stock Exchange.
It dipped again in after-hours trading after the company
said it earned a profit of $0.04 per share, excluding a
restructuring charge.
"We'll have to wait and see, but at first glance it seems
like the worst is over for Nike," said Paul Foster, investment
strategist and editor of 1010WallStreet.com. "We could see vols
drop tomorrow."
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Copyright 1998, Reuters News Service |
