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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (46972)	6/27/1998 7:01:00 PM
From: Jack T. Pearson	Read Replies (1) \| Respond to of 58727

Dave, IMHO, AG cares a lot more about his reputation for maintaining long-term US economic growth than he cares about doing a quick favor for President Clinton. Sometimes their interests may coincide, but I certainly don't see AG sacrificing tomorrow for today. Jack

To: jjs_ynot who wrote (46972)	6/27/1998 7:03:00 PM
From: ViperChick Secret Agent 006.9	Respond to of 58727

sometimes we can read too much into something however if you look at this site you will see that this 9 day move was unexpected biz.yahoo.com biz.yahoo.com biz.yahoo.com ------------------ Friday June 26, 4:12 pm Eastern Time US OPTIONS/Mueller vols rise amid takeover talk CHICAGO, June 26 (Reuters) - Implied volatility on Mueller Industries Inc. (MLI - news) continued to climb on Friday as rumors that the Memphis, Tenn.-based company would soon receive a takeover bid continued to swirl around the market. Volatility for the July 35 and 40 calls rose as high as 78 and 81 percent, respectively. That's up from their averages of around 34 and 33 percent. ''Talk is that a bid could come from a European company,'' a trader said. By 1107 CDT/1607 GMT, the underlying stock was trading at 36-11/16, up 9/16. The stock has risen by some 20 percent during the past week on talk of a takeover. Options volume, which averages about 30 contracts per day, has been swelling all week. By midday, 387 calls traded. No puts traded. Most of the day's volume was in the July 40 calls, where 195 contracts changed hands. The contract traded as high as 1-13/16 and as low as 1-7/16. ''There certainly appears to be something going on,'' said Joseph Sunderman, an options analyst with Schaeffer's Investment Research. ''But not all of that buying was coming in off the asking price.'' There was no one at the company who could comment on the rumors as all of its executives were out of town, a spokeswoman said. Elsewhere, trading in Mellon Bank (MEL - news) options was heavy for a second day as rumors that the bank was the target of a bid from Chase Manhattan Bank (CMB - news) lingered, but waned. Disappointment that a deal wasn't announced this morning, plus profit-taking pushed the stock down 2-7/16 to 72-3/8. Yet implied volatility crept higher, rising to about 50 percent in the July at-the-money options from about 48 percent on Thursday. Traders also took note of a big trade in J.P. Morgan (JPM - news) puts. They noted that 720 August 115 puts traded, with the stock trading at 117-13/16, down 15/16. A large institution bought the puts, probably to protect the stock, said Paul Foster, investment strategist and editor of 1010WallStreet.com. He said he thought J.P. Morgan is a better fit for Chase because of its global presence. ''If Chase wants to compete with Travelers/Citicorp, then they're going to need to acquire a company that has a global reach,'' Foster said.