IBM Calls Rise; Semis Lead Naz

Inflation-friendly CPI numbers and 0.6% drop in December’s industrial
production report helped spark a 2.4% Nasdaq gain Wednesday that was led by chip
stocks. Semiconductors were the days top group while biotech was the weakest.

At the close, the VIX had increased .33 to 28.67.

The OEX 710 calls closed down .70 to .90.

Among bigger movers on heavier-than-average volume:

IBM
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rose 3 15/16 to 96 11/16 ahead of what turned out to be
better-than-expected earnings. The IBM January 100 calls ros e1 1/8 to 1 15/16
on heavier-than-average volume.

Brocade
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gained 5 1/16 to 97 7/16 while the Brocade January 85
calls rose 4 3/8 to 12 3/4 on more than 10,000 contracts.

Nortel Networks
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gained 2 13/16 to 34 3/4 while the Nortel January 35
calls added 7/8 to 1 7/16 on more than 12,000 contracts.

Yahoo!
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jumped 2 7/8 to 30 1/4 as Internets showed some new life.
The YHOO January 30 calls added 15/16 to 1 1/4 on more than 10,000 contracts.