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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (3400)	9/21/1998 9:33:00 AM
From: Stash	Read Replies (1) \| Respond to of 12623

G, Whya are the bid and ask reversed prior opening. bid 11 9/2 ask 11 1/2 ??????????? Stan

To: gbh who wrote (3400)	9/25/1998 3:33:00 PM
From: Asymmetric	Read Replies (1) \| Respond to of 12623

Options Buzz: Ciena Takeout Rumors Resurrected By Dan Colarusso Senior Writer 9/25/98 2:36 PM ET (from Street.com) Not long ago, investors were fleeing Ciena (CIEN:Nasdaq) like extras in Titanic. Customers were defecting and merger talks with Tellabs (TLAB:Nasdaq) were in trouble, a combination that drove the stock down from 88 5/8 in mid-July to 14 today. But today speculators are using the options markets to gamble on the revived chance that the optical network supply company will be snatched up by one of the major networking firms, with Cisco (CSCO:Nasdaq) as the most-mentioned suitor. While denials are plentiful, options traders were pumping volume in Ciena calls, even rolling the dice on far out-of-the-money contracts that would only benefit from a blockbuster deal that pushes the stock up to the low 20s. Ciena shares had risen to as high as 15 1/4 this morning, but were settled in up 1/2 to 14 7/16 by early afternoon. The froth created by the rumors pushed volume on the October 15 calls to 1,600, contracts whose price climbed just 1/4 ($25) to 1 1/4 ($125). Savvy traders took advantage of the activity to sell the October 20 calls for about 5/8 ($62.50), movement that resulted in volume of more than 3,000 contracts at that lofty level. Some of this was accounted for by some covered call writing. Floor traders in Chicago said Ciena action was "two-way paper," meaning both buyer and sellers of options were in the market, especially with the overall implied volatility of most options still higher than normal. The takeover rumors could be carried on the shoulders of Ciena shareholders who bought in during the Tellabs negotiations, hoping for the company's shares to move high enough to sell out without too much damage.