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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (41476)	12/17/1998 7:19:00 PM
From: Thomas G. Busillo	Respond to of 53903

Skeeter, for a sleepy day without any significant company-specific news in an out-of-the money call with 3 full sessions left until X - not 5,000. Granted, some of the mix may have been closing out positions prior to X, but the jist of the piece seemed to suggest some pretty gonzo specualtion and I'm assuming the guy they quoted, Jon Najarian, is in a great position to sort it out (FWIW, he also has a website @ 1010wallstreet.com which is worth checking out). CBS did an excellent follow-up piece: cbs.marketwatch.com Micron gamblers come up winners By Brenon Daly, CBS MarketWatch Last Update: 6:07 PM ET Dec 17, 1998 StockWatch CHICAGO (CBS.MW) -- In the fast-and-loose world of options, things can change very quickly indeed. And that can raise some questions about how information makes its way in the trading pits. Remember that this column closed on Tuesday noting the heavy trading in Micron Technology (MU), particularly in the December 50 calls (MU LJ). Nearly 5,000 of those contracts changed hands on Tuesday, closing off 1/8 to 9/16. Move ahead to Thursday and those same contracts are worth 2 7/8 -- or nearly six times their value on Tuesday. More than 6,300 contracts traded. (See CBS.MarketWatch.com option chain for Micron Technology.) The reason for the jump: positive comments from BancBoston Robertson Stephens analyst Dan Niles, who said he expects the stock to hit 200 by the end of 2001. "We're at the start of the next big cycle in semiconductors," said Niles. See related story. Niles' comments were noteworthy because they included a three-year price target, instead of the more common one-year target. The huge gains and heavy trading prompt some questions if somebody knew something. Jon Najarian, who trades Micron for Mercury Trading at the CBOE, said some of the activity may have been players who knew -- or thought they knew -- about the positive comments before they were released. Regulatory officials for both the CBOE and the Pacific Exchange, where Micron Technology options trade, weren't available for comment. Typically, they don't discuss cases except to say they are "conducting a routine review." "People are not using options to off-set risk, as they were in September and October," Najarian said. "Now they're looking for a big score." On second-thought make that a FANTASTIC piece by Brenon Daly <g> Good trading, Tom