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

To: marc chatman who wrote (16142)	3/23/1998 2:23:00 PM
From: Teddy	Read Replies (1) \| Respond to of 95453

Options Buzz: Options Traders Hunting for Upside in Oil Services Plays By Dan Colarusso Staff Reporter 3/23/98 1:56 PM ET Looking at oil today? Want to make an options play? Get in line. With three OPEC nations planning to cut production in an attempt to maintain prices, the oil and oil services companies shone in an otherwise dim market early today. And, options traders, digging in after a sweet-as-pie, cigar-at-the-close triple-witching Friday, made their plays on the sector early and often. Market makers often try to exploit high-profile situations such as the OPEC announcement to juice premiums at the expense of slow money. Today's action, though, is a continuation of institutional interest in the sector that began last week. "Friday was a big day, and it's all client-driven order flow," said one major firm options trader. "People are looking to gain exposure to the group through the individual companies and the index." The index is the Philadelphia Stock Exchange Oil Services Index, which was up 7.58 to 115.76 midway through the session. The OSX was the busiest index on the Philly floor this morning, with volume high in both puts and calls. Among the busier strike prices were the April 110 calls, which recorded volume on 1,200 while rising 4 3/4 ($475) to 9 ($900), and the April 120 calls, which also traded near 1,200 contracts and jumped 1 3/8 ($137.50) to 4 3/8 ($437.50). Puts in the same strike price range were also busy today, but premium on that side of the ledger was sliding today. Among the big oil services firms showing strength today were Halliburton (HAL:NYSE) and Schulmberger (SLB:NYSE). Both stocks were up more than 4 near noon, and investors were chasing at-the-money and out-of-the-money calls in both situations. Schlumberger, which was trading at 78 1/8, saw volume in its April 80 calls run to 1,650. The price of the option moved 1 1/4 ($125) to 2 3/8 ($237.50). Halliburton got the same kind of attention from Chicago options traders, who took volume on its April 55 and 60 calls to well over 1,000 contracts while the stock traded at 52. The price of the April 55s rose 5/8 ($62.50) to 1 ($100), and the April 60s cost 3/8 ($37.50), up 5/16 ($31.25) on the day. Diamond Offshore (DO:NYSE), another popular oil services stock, rose 2 1/8 to 49 3/16 as traders plowed into its April 55 calls. Volume on the options was 1,024 at 12:30 p.m. EST.