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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: katy hohmann who wrote (6485)	7/9/1999 2:26:00 PM
From: JakeStraw	Read Replies (1) \| Respond to of 8358

US OPTIONS - Cabletron vols up again, volume rises biz.yahoo.com CHICAGO, July 9 (Reuters) - Implied volatility rose again and call volume jumped Friday in options on Cabletron Systems (NYSE:CS - news) as the market chewed through recurrent takeover talk, analysts said. This time the renewed buyout rumor found fodder in Business Week magazine, which quoted several investment professionals as saying the Cabletron buyer might be a global telecom giant. ''That's what it looks like,'' said Elliot Spar, senior options strategist, Gruntal & Co., pointing to the Business Week article as the reason for the revived activity in the options. ''The vols are up.'' Cabletron declined to comment to Business Week on the merger talk. Implied vols, which another option analyst said have traversed the 72- to 93-percent range during the last three months, rose to around 95 percent for the August 15s and to above 100 percent for the July 15s, which expire next Friday. The one-month historical volatility of the stock was around 60 percent. More noticeable to both analysts was the influx on Friday of apparently retail interest that pumped up options volume, which they said likely stemmed from speculation that the weekend might spawn solid merger news. ''A lot of Fridays, typically the stock has jumped,'' added Spar. In the most-active July 15 calls, which firmed 1/8 to 1/2, volume at 1218 CDT/1718 GMT on the American Stock Exchange option was 1,062 on open interest of 10,255. At the Philadelphia Stock Exchange, the July 12.5 calls gained 11/16 to 1-5/8 on volume of 1,250 and open interest of 7,058. Shares of the high-performance network solution provider, based in New Hampshire, rose 1-1/16 to 14-1/16 on New York Stock Exchange volume of 3.2 million.