Nasdaq Bounces; Compaq Puts Sink

Technology stocks have bounced back 3% from oversold levels while the Dow and
S&P 500 are marginally higher. Semiconductors are the day’s top sector, and
drugs are the weakest.

At mid-day, the VIX has decreased 1.95 to 30.97.

The OEX 710 calls are up 1/2 to 12.

Among bigger movers on heavier-than-average volume:

Compaq
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has bounced 2.18 to 23.68 as box makers rally following the
Gateway debacle. The Compaq December 27 1/2 puts are down 5.20 to 4.00 on more
than triple the average call volume.

Intel
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remains under pressure following an analyst downgrade on
Thursday and is currently down 2 1/16 to 36. The Intel January 01 puts are up
13/16 to 3 5/8 on more than 18,000 contracts.

Cisco
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has battled back and is up 2 1/2 to 50 3/8. The Cisco
December 50 calls are up 1 to 3 5/8 on more than 8000 contracts.

Pepsi
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is down 3 3/8 to 42 on news that it may try to acquire Quaker
Oats
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. The Pepsi January 40 calls are down 3 1/8 to 3 5/8 on more than
4500 contracts.