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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: @jim who wrote (10503)	4/30/1998 12:41:00 AM
From: Javelyn Bjoli	Respond to of 14631

Options Report: Informix Soars A Session Before Earnings NEW YORK -Informix Corp.'s call options are soaring again as some hot-money traders take positions a session before the database-technology company is to release its first-quarter earnings. The activity has pushed the implied volatilities of the at-the-money and out-of-the money calls up to 100%. The volatilities would probably be as high as 120% to 130% if not for a seller in the May 10 calls who is taking his profits out of the market, an Informix trader at the Chicago Board Options Exchange said. "He's been the guy that's keeping the pressure on them," the trader said. Implied volatility is a measure options traders use to determine how likely it is that the price of the underlying security will change. The volatility has increased from about 85% on Monday. "This is the highest the vol has been been since the problems last spring with accounting irregularities," said Paul Foster, a trader and options strategist at 1010WallStreet.com. The company's past problems have included last year's restatement of 14 quarters of financial results because of accounting irregularities and a disclosure that federal regulators have been looking into its bookkeeping practices. Informix's stock - the company is reporting earnings after the close of trading Thursday - is up 11/16 at 10 1/8 on heavy volume. At the CBOE, the May 10 call is up 5/16 at 15/16 on volume of 3,481 contracts, compared with open interest of 26,333 contracts. Trading is two-way on the strikes. Institutional and retail traders are buying paper from the trading crowd. "The smart money looks like (Informix's earnings) are going to be up a little, that it will be a little better this quarter," the Informix options trader said.