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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Danny Chan who wrote (2454)	10/8/1999 4:08:00 PM
From: Howard C.	Read Replies (1) \| Respond to of 15615

CHICAGO, Oct 8 (Reuters) - Implied volatility and volume on the options of communications company Global Crossing Ltd stayed strong Friday as the stock gained ground on takeover rumors. "The vols have gone up. I guess there is some takeover speculation," a lead market maker at Omega Options on the Pacific Exchange (PCX) said. Implied volatility for the November 30 and 35 puts and calls stood at about 75 to 80 percent, up from 65 last week. On Friday, most of the activity was on the call side in the Octobers and Novembers. But the PCX trader noted the real measure of volatility was in November rather than October which is due to expire next Friday. "I believe they are buying some out-of the-money calls. They are even trading October 40s, 42.5s and 45s calls and there is only a week to go," the PCX trader said. "If October 45 calls are $11 away with a week to go, there is definitely takeover speculation." At 1041 CDT/1541 GMT, the November 30 calls on the Chicago Board Options Exchange (CBOE) rose 1-7/8 to 6-5/8 on open interest of 9,269 contracts and interexchange volume of about 2,270 contracts. In contrast, the November 30 puts were off 1/2 to 1-5/8 on open interest of 2,768 contracts and combined volume of about 190 contracts. Options volume has also swelled. On Thursday, a total of 81,737 contracts, of which 70,675 were calls and 11,062 puts, changed hands, up dramatically from average daily volume of 31,645 contracts, according to McMillan Analysis Corp daily newsletter on Friday. Shares of the Bermuda-based firm rose 2-12/16 to 34-7/8 on Nasdaq volume of 22 million shares. Officials at Global Crossing, a company planning to build an undersea telecommunications network spanning five continents, were not immediately available for comment on the takeover rumors. ((Doris Frankel, Chicago Derivatives Desk(312)408-8750, chicago.derivatives.newsroom@reuters.com)) REUTERS