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To: The Phoenix who wrote (54445)	9/18/1998 3:18:00 PM
From: Glenn D. Rudolph	Respond to of 61433

U.S. OPTIONS/VIX recedes ahead of options expiry Reuters Story - September 18, 1998 13:29 %US %STX %DRV %.N/OPT .OEX .VIX %MRG FP CQ LMT ASND LU CS LSI V%REUTER P%RTR CHICAGO, Sept 18 (Reuters) - Implied volatility on S&P 100 options receded in the early going on Friday after a choppy morning session and ahead of this afternoon's expiration of index and equity options. Yet traders said they were not expecting expiration to have a big impact on the market at the close. "Over 15 triple-witching expiration days, 10 have closed positive and five have closed lower," said Jerry Hegarty, chief analyst with Cape Market Research and editor of Hegarty's Options Navigator. "The most significant result has been the overall total lack of volatility," he said. "Expect that lethargic trend to continue today." By 1018 CDT/1518 GMT, the OEX was down 0.41 point to 493.94. The Market Volatility Index , which measures implied volatility of several strikes on OEX options, eased 1.82 points to 40.51. "Volatility is high going into expiration.... I think it might shrink a little bit next week," said Scott Fullman, chief options strategist with Swiss American Securities. A handful of takeover rumors in the market drove activity in some individual stock options. Among them were FirstPlus Financial Group , whose options volatility jumped to about 130 percent in brisk trading on talk that a deal was imminent and would likely be priced around $30 per share. The Dallas-based financial institution said last month it had begun discussions with potential acquirers and had retained advisers to assist with evaluating offers. A spokesman for FirstPlus declined to comment further. The stock was up 1-3/16 to 21-1/2. Implied volatility on options on Comsat Corp. , a rumored target of Lockheed Martin Corp. , also remained high ahead of the company's board of directors meeting this evening. Volatility on options on Ascend Communications , a rumored target of Lucent Technologies , also remained buoyant as did volatility on options on Cabletron Systems , also the subject of bid speculation. Volatility on LSI Logic options held firm as professionals continued to scoop up calls, although traders said they were not aware of news that was fueling activity. "LSI could be an attractive takeover target, but I've heard that for about a year now," a market maker said

To: The Phoenix who wrote (54445)	9/18/1998 3:24:00 PM
From: gbh	Read Replies (3) \| Respond to of 61433

Cable and DSL OG, well, its clear that CSCO is shipping press releases in volume :), but not much else is clear to me. Where I live, like many, many, many other areas, the cable companies and the LEC's are VERY slow to deploy. And when they are deploying, the consumer price point just isn't right yet. Don't get me wrong. I would love high speed access. And would pay double to get it. But where cable is deployed here, its $40/month and not two way. And DSL (supposed to be soon in the Bellsouth region) will be $50 or $60/month. I will pay. But the mass market simply will not. Until these new breed ISPs come to grips with a $25, or maybe $30/month consumer price point, it just won't have mass appeal. And who are we counting on here. Cable companies? RBOCs? These guys have never "gotten it". And until the mass appeal comes, these guys will be slowwww to deploy. But without deploying, they can't have mass appeal. A little chicken and egg situation. You are correct though, that CSCO will be a player. Probably "the" player. I am patient though about re-entering the stock. I sold it well. I wish I could say the same of some other dogs I still hold. But I'll assure you one thing. If CSCO drops to the low 50's on a market sell-off, the dogs will be let loose, and I'll be comfortable with CSCO again. Gary