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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (31718)	11/5/1999 2:09:00 PM
From: Brian Malloy	Respond to of 74651

U.S. Options - Microsoft vols up, finding awaited CHICAGO, Nov 5 (Reuters) - Implied volatility in options on Microsoft Corp. <MSFT.O> rose Friday in busy trade as investors braced for the release of the judge's findings in the company's federal antitrust trial. "We are so swamped in there," said a market maker in Microsoft options at the Pacific Exchange (PCX). "They have been waiting for this for months. It's an event." Implied volatility spiked up to 50 percent in Microsoft November 90 calls and 52 percent in the puts, versus 48 percent to 49 percent the day before and the 36 percent to 38 average of the past month. December volatility jumped to 43 percent in the calls and 45 percent in the puts from 40 percent. Sources familiar with the case told Reuters the court said to prepare for a ruling Friday. U.S. District Court Judge Thomas Penfield Jackson previously said he would release a ruling in the "findings of fact" on a Friday at 6:30 p.m. EST (2330 GMT). Investors have been accumulating puts and buying strangles in Microsoft options all week in advance of the judge's ruling, said another PCX trader. "Implied volatilities are dramatically higher in Microsoft on anxiety over the findings of fact," said Paul Foster, investment strategist at 1010wallstreet.com. He said the higher vols were justified because the stock could rise or fall dramatically depending on what the judge decides. Jackson's finding will explain what facts he believes were proved in the trial, which began in October 1998. After hearing additional argument from both sides, the judge will then decide in coming months whether the facts show a violation of antitrust law. The Justice Department and 19 states alleged Microsoft used a monopoly in the operating systems for personal computers to destroy rival Internet browser-maker Netscape. Microsoft shares were down 7/8 at 90-7/8 in active trading.