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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Debt Free who wrote (38898)	10/27/2000 1:03:42 PM
From: michael97123	Read Replies (1) \| Respond to of 70976

U.S. Options-Applied Materials vols up as stock dips Not an expert at this. CSCO is weak today on rumors of an impending downgrade by a major wall street firm. So now the market appears fidgety about the November earnings reporters I guess. I think the CSCO/AMAT rumor link existed last quarter too as we waited supposedly for disappointing earnings/possible downgrades that never came(not counting Jon Joseph and the crew's end of the cycle scenario that wrongly killed the chips imo).

To: Debt Free who wrote (38898)	10/27/2000 1:34:24 PM
From: mitch-c	Read Replies (1) \| Respond to of 70976

U.S. Options-Applied Materials vols up as stock dips anyone care to comment on this and how this impacts us???? CHICAGO, Oct 27 (Reuters) - Implied volatility in options of semiconductor company Applied Materials Inc. (NasdaqNM:AMAT - news) rose amid some put buying as the stock dipped on Friday. <snip> ...The options trader noted some put buying in the November 50 series. ``That is why the volatility is up,'' he said. Options can measure the expectation of movement of a stock - the implied volatility. In this case, someone buying NOV 50's feels that he can profit from AMAT going down (thus buying a put); further, if it drops below 50, his option goes "in the money," and tracks the stock price close to $1 for each $1 change. Bottom line - someone is betting that he can make big money from a minor to significant drop in AMAT between now and NOV options expiration (3d Saturday, or NOV 18). Please note that I did something similar a few weeks back, around Oct 19 - but my actions are WAY more trivial than a financial reporter would notice. Message 14620967 JS and I discussed our conclusions and analogies about a week ago. Message 14651753 - Mitch