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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Harold S. Kirby who wrote (29948)	4/23/1999 1:34:00 PM
From: Mort	Read Replies (1) \| Respond to of 45548

US OPTIONS/3Com vols spike again on buyout rumors Friday, April 23, 1999 12:52 PM Mail this article to a friend new! CHICAGO, April 23 (Reuters) - Implied volatility in 3Com Corp. (Nasdaq:COMS) options spiked up early on Friday before backing off peaks, as traders said rumors circulated again that the supplier of local- and wide-area network systems might be bought. Changes in options volatility can signal expectations of a possible event. Implied vols for the front month popped up early on Friday to as high as 69 percent before backing off to about 61 percent. That was still on the high end of the range during the last six months of roughly 52 to 71 percent. "There are rumors about takeover floating all around," said a market maker in 3Com options at the Pacific Exchange. "It (the talk) has been going on for about a year...but it (the stock) is certainly acting much more alive now than it has in the last month or so." "It's Friday takeover rumors again," said Paul Foster, investment strategist and editor of 1010wallstreet.com. Shares of California-based 3Com traded on Nasdaq rose 3-7/8 to 26-3/16 at 1135 CDT/1635 GMT on turnover on more than 19.6 million shares. 3Com officials could not be reached immediately for comment. Asked which company was rumored trying to buy 3Com, the market maker replied, "Anybody and everybody." He said Internet message boards also were offering up several names including Nokia, Ericsson, Apple and Lucent. Foster noted that the last five Fridays have spawned various takeover rumors concerning 3Com that buoyed vols, which then deflated early the next week when none of the chatter proved true. "Why not sell into the IV (implied volatility) spike?" he said, but the market maker said that sellers had not yet entered. Foster also noted growing complacency about the takeover rumors that at some point could backfire on volatility sellers who have taken advantage of the increasingly regular end-of-week spike up and subsequent erosion in volatility. Quote for referenced ticker symbols: COMS © 1999, Reuters