To: freeus who wrote (77902 ) 11/11/1998 12:37:00 AM From: Zeem Read Replies (1) | Respond to of 176388
U.S. OPTIONS/Internet vols jump as sector surges November 10, 1998 9:56 PM EST CHICAGO, Nov 10 (Reuters) - Implied volatility on most Internet stocks jumped on Tuesday as the sector moved back into favor. The Internet index <.IIX > climbed 4.60 points, or more than 1 percent, to 439.23 after setting a fresh record high at 445.72. Large caps lagged, with the S&P 100 <.OEX > slipping 0.22 point to 553.40. Implied volatility was flat. Paul Foster, investment strategist and editor of 1010WallStreet.com, attributed the bullish sentiment in the sector to positive comments from Goldman Sachs. In addition, several Internet companies are scheduled to speak at a conference in San Francisco, Foster added. "That's helping interest in the sector," he said. Among the features were options on Yahoo! Inc. (Nasdaq: YHOO) and Excite Inc. (Nasdaq: XCIT), which saw their options volatilities rise to around 70 and 95 percent, respectively, said Scott Fullman, chief options strategist with Swiss American Securities. Yahoo stock surged 11-13/16 to 176-9/16, while Excite stock added 4-1/8 to 51-5/8. Trading in Amazon.com (Nasdaq: AMZN) also heated up, with implied volatility jumping to around 85 percent, as the stock rallied 4-7/8 to 131-3/4. "They're just running away," Fullman said of the Internet stocks. "It's very volatile."In other trading, activity in Dell Computer Corp. (Nasdaq: DELL) remained brisk as investors awaited third quarter results due on Thursday. The November 70 calls drew the most volume of any options contract on all four exchanges, with more than 21,000 contracts changing hands between 5-1/4 and 2-7/8. Dell stock ended 1-5/16 higher at 70-5/16, having set a fresh all-time peak at 72-1/2. REUTERS