Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Norm Demers who wrote (24863)	6/25/1998 8:36:00 AM
From: Henk Kruisbrink	Read Replies (1) \| Respond to of 36349

US OPTIONS/PairGain vols expand, calls active Reuters Story - June 24, 1998 20:21 %US %DRV %STX %MRG %.N/OPT PAIR V%REUTER P%RTR CHICAGO, June 24 (Reuters) - Implied volatility on PairGain Technologies Inc. options edged higher in active trading on Wednesday as options traders assessed the prospects of a merger, traders said. The stock stumbled while implied volatility expanded after the company's chief executive Charles Strauch said in a CNBC interview that the company was not entertaining a merger, but was willing to consider one if the right partner came along. The stock fell 1-3/4 to 17-3/8 on heavy volume of more than 11.4 million shares, after rallying sharply in recent sessions. Options activity was brisk on the Chicago Board Options Exchange as volume in the calls outnumbered puts 6,955 to 1,611. "People are definitely playing it for a takeover," said Michael Schwartz, a managing director at CIBC Oppenheimer. "The stock is down, but the options market seems to disagree. People are buying out-of-the-money calls." Most of the day's volume was in the July 20 calls, where more than 2,700 contracts traded. A market maker noted that one firm was a big seller of those calls. The July 20 calls traded between $1-5/8 and $1/2. The July 17-1/2 calls also were active, registering volume of 1,170 contracts. They traded as high as $3-1/4 and as low as 1-1/16.$Almost every strike price in every month, from July to January, recorded some volume. However, the market maker also noted that there was no big arbitrage houses playing the options and little institutional order flow. "It's mostly retail houses -- the Schwabs and the like," he said. "It's difficult to guess what they're doing, but they could be buying calls and selling the stock."