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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (24307)	11/9/1999 2:54:00 PM
From: Johnny Canuck	Respond to of 69854

Implied volatility stayed strong Tuesday in options on Leap Wireless Inc. (NASDAQ:LWIN) with volume picking up as puts buyers entered and the stock continued rising. Implied volatility for the at-the-money November 85 calls stood at roughly 160 percent, with the puts near 175 percent. In the December 85s, calls stood at about 130 percent and the puts near 140 percent. "Everything is just firm volatility-wise," said Barton Bergman, designated primary market maker with Timber Hill at the Chicago Board Options Exchange. "I would say it's (implied vols) up 5 percent the last few days." "The (stock) rally was spectacular over the last month and there has been a dearth of news, really, in this sector," he added. "We're not going from $20 to $90 on just a 'hot' sector. ... The volatility is justified because the stock has barely paused the last two weeks." Shares of the California-based wireless communications carrier closed at 30 on Oct. 26 and have spiked upward since. At 1156 CST/1756 GMT Tuesday, Leap Wireless stock was up 1-5/16 to 88-5/16 after reaching a new 52-week high of 91 earlier in the day, on Nasdaq market volume of 776,100. Bergman said options volume, which typically averaged around 500 options a day, also grew Tuesday as some put buyers stepped in, although not in big size. Near midday, some 1,500 puts and 465 calls had changed hands on the CBOE and Philadelphia Stock Exchange combined. Of those, the out-of-the-money November 70 puts were busiest, rising 1-1/8 to 4-5/8 on the CBOE on volume of 355 and open interest of 353. ((Laura Jacobs, Chicago Derivatives Desk(312)408-8750