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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: greg nus who wrote (74310)	10/6/1999 4:30:00 PM
From: tejek	Read Replies (1) \| Respond to of 1572753

Number of calls indicate better than expected earnings: OPTIONS-Advanced Micro vols high ahead of earnings CHICAGO, Oct 6 (Reuters) - Implied volatility in options on computer microprocessor maker Advanced Micro Devices Inc. <AMD.N> remained high Wednesday as the stock firmed ahead of its third quarter earnings due late Wednesday. "The volatilities are up across the board," said Paul Foster, investment strategist and editor of 1010wallstreet.com. "AMD earnings are due tonight and they (Wall Street) are looking for a loss of 97 cents." Sunnyvale, Calif.-based Advanced Micro Devices Inc. is scheduled to report third quarter earnings on Wednesday. The company was expected to report a loss of $0.97 versus gain of $0.01 in the same year-ago quarter, according to analysts' mean estimates provided by First Call/Thomson Financial. Foster noted the October 20 calls were at 97 percent volatility and puts at 92 percent, up from 68-69 percent three to five weeks ago. At 1406 CDT/1910 GMT, October 20 calls on the Pacific Exchange firmed 5/16 to 15/16 on open interest of 11,475 contracts and interexchange volume of about 5,500 contracts. In contrast, October 20 puts were off 1/2 to 1-9/16 on open interest of 7,153 contracts and combined volume of about 180 contracts. "They are buying calls in anticipation of better-than-expected earnings," Foster said. "Today there are more calls," an options trader added, citing the uncertainty of earnings. But he said that the October volatility would be more sensitive to price movement because the front month expires in nine days. "Their time frame is shrinking," he said. Implied volatility of the November 20 puts and calls was about 77 percent, up from 68 to 69 percent, Foster said. Options volume was not outrageous. "We have had much busier," the options trader said. Shares of Advanced Micro firmed 7/16 at 19-1/16 on volume of about 2.5 million shares. 15:18 10-06-99 Copyright 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.