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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Robert Floyd who wrote (13027)	2/26/1998 7:49:00 PM
From: Big Dog	Respond to of 95453

U.S. OPTIONS FOCUS/Western Atlas active Reuters Story - February 26, 1998 18:41 %ENQ %US %DRV %STX %MRG %.N/OPT WAI HAL DI %AN BHI SLB %RET TOY V%REUTER P%RTR CHICAGO, Feb 26 (Reuters) - Options on Western Atlas Inc and other oilfield services companies drew in waves of speculative interest on Thursday after Halliburton Co and Dresser Industries announced a $7.7 billion merger deal, options specialists said. "Everyone is searching for the next takeover," an options analyst said of the heavy volume in the options and underlying stock. "It gives a salesman a theme, a reason to sell something and tell them they might miss out." Implied volatilities on Western Atlas options climbed toward the upper end of their five-week range to about 85 percent in the March contracts, the analyst said. Volatility had been as high as about 95 percent and as low as 69 percent in the past five weeks. The March 80 and 85 calls and March 70 puts were among the most active on the Chicago Board Options Exchange. "Western Atlas has been a rumored takeover target before this (Dresser) deal," a CBOE options trader said. "This just got everyone talking again." However, he added that a few large spreads contributed to most of the options volume in Western Atlas. He noted one big buyer of the March 80/85 call spread and a seller of March 70 puts. Western Atlas stock was up 3-3/8 at 76-1/8 at 1235 CST/1835 GMT. Dealers noted above-average volume in options on other stocks in the sector including Baker Hughes Inc and Schlumberger Ltd on the back of the deal. As expected, volume was heavy in Dresser and Halliburton options as well.

To: Robert Floyd who wrote (13027)	2/26/1998 8:00:00 PM
From: Big Dog	Respond to of 95453

Report from the front. I have a couple of items to report that will have to be vague...sorry about that, but take it for whatever it's worth...if anything. There is a rumor of a high level NYSE drilling company exec that may be leaving his company to pursue other opportunities. No confirmation yet of this. My speculation is that he (maybe along with a couple other "hands") may branch out and start a new oil service company...maybe via acquisition. Just speculation and not based on ANY facts. Also, there will liklely be an announcement on Friday or Monday that has the potential to temporarily depress the drillers...depending on the spin put on the announcement. If the spin is good, which I expect it will be, it may have zero effect -- and could even be a positive for this driller. Sorry I can't say any more on this. That's about it for today.