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 : Computer Associates -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (2692)	7/22/1998 9:57:00 PM
From: DEER HUNTER	Read Replies (2) \| Respond to of 5232

Look at the crap this reporter put out.......they call it disappointing earnings now. ------------------------------------------------------------------------- Wednesday July 22, 9:29 pm Eastern Time U.S. OPTIONS/Bergen vols surge, awaits decision CHICAGO, July 22 (Reuters) - Implied volatility on Bergen Brunswig Corp. (BBC - news) options remained well above 100 percent as traders awaited a decision from the government's case against it and three other drug wholesalers, which want to combine into two companies. ''It's getting down to the nitty-gritty and everyone is expecting the judge to make a decision either today or tomorrow,'' said one trader. Implied volatility for nearby at-the-money options was holding around 108 percent, up sharply from around 38 percent before the trials began. Traders said the options market was reflecting expectations of a favorable outcome for the company, whose stock was up 2-3/16 to 49-3/4 amid a sharply lower broad market. ''(Bergen stock) is really just recovering what it lost yesterday, but people are expecting good news,'' said one options trader on the Chicago Board Options Exchange. He noted heavy call buying, mainly by institutions, in recent sessions. ''It seems to be more of a directional play,'' the trader said. In other trading, implied volatility on Computer Associates Inc. (CA - news) options climbed to 57 percent from around 42 percent in early trading. The stock tumbled 18-5/16 to 38-15/16 after the company posted disappointing earnings after the close on Tuesday. A flurry of analyst downgrades ensued. Goldman Sachs was among those who downgraded the stock. The brokerage recommended switching out of Computer Associates and into BMC Software Inc. (BMCS - news). BMC stock was down 2-12/16 to 51-7/16, but implied volatility held steady around 50 percent for August at-the-money options ahead of the release of its fiscal first quarter results on Thursday, traders noted. ''It's a bit surprising,'' said one. ''Vols haven't expanded that much considering how much stocks move when earnings disappoint.'' According to a survey by First Call, analysts were expecting BMC to post a $0.28 per share profit in the quarter.