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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: John Stichnoth who wrote (7016)	8/30/1999 4:20:00 PM
From: David Wiggins	Read Replies (1) \| Respond to of 29987

OPTIONS-Globalstar vols firm, calls bought CHICAGO, Aug 30 (Reuters) - Implied volatility firmed Monday in options on Globalstar Telecommunications Ltd. as some call buyers entered while the stock continued to back off from resistance. ``Yes, they've (implied vols) ticked up a little,' said Adam Rosenberg, a market maker at the Chicago Board Options Exchange (CBOE). ``One reason is Iridium is going out of business (and they're) worried about the whole market.' Implied vols for the September 25s stood at around 87 percent, while the stock's one-month historical volatility was about 69 percent. ``It had been a lot higher...(but) when the stock approached 30, there was a big seller of the December at-the-month calls, so we dropped the volatility last week,' Rosenberg added. ``There has been a buyer of the Sept 30 calls over the last couple days and a few of the Sept 35s' he added. ``There's someone who keeps buying them.' He said concern spread about the satellite telecommunications industry after Iridium LLC (Nasdaq:IRID - news) filed a voluntary Chapter 11 bankruptcy petition earlier this month. On Monday, another global satellite phone service provider, ICO Global Communications Ltd. (Nasdaq:ICOGF - news) also filed for Chapter 11 protection. In Globalstar options, where Rosenberg characterized volume as ``very inconsistent,' roughly 1,485 calls and 725 puts had changed hands at 1440 CDT/1940 GMT Monday at the CBOE and American Stock Exchange combined. Some 865 September 30 calls, which lost 1/2 to 1, traded on open interest of 1,497. Shares of Globalstar were down 3-1/8 at 25-3/4 on Nasdaq market volume of about 1.2 million. The stock August 18 closed at 30-1/16 and has backed off since then.