Any options platers available to decipher this for me? Thanks in advance. Brian
April 1, 1999 04:55 PM
CHICAGO, April 1 (Reuters) - Lucent Technologies Inc. LU options were active on Thursday as investors scooped up calls before the stock splits on Monday, traders said.
The stock market is closed on Friday in observance of Good Friday.
The April 110 calls were among the most actively traded on the American Stock Exchange, where about 2,600 contracts changed hands as the stock rose as high as 111-3/8.
"Usually the stock runs up and time premiums drop ahead of a stock split, but here it looks like the call buyers were wrong. (The calls are) probably a better sale than a buy," said Michael Schwartz, chief options strategist at CIBC Oppenheimer.
Jay Shartsis, director of options trading at R.F. Lafferty & Co., added, "I think this sell-the-split strategy is going to work well, and I'm considering mechanically shorting every split that comes along."
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