PMC Sierra Puts Jump; Stocks Slip

Stocks are slightly lower Thursday following an inflation-tame Consumer Price
Index report. Retailers are the day’s top performing sector while chemicals are
the weakest.

At mid-day, the VIX is down .26 to 28.51.

The OEX November 730 calls are down 2 1/2 to 5 1/2.

Among bigger movers on heavier-than-average volume:

PMC Sierra
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is down 11 3/32 to 120 1/32 following a downgrade by
Merrill Lynch. The PMCS November 130 puts are up 5 5/8 to 10 1/2 on more than
6000 contracts.

Gemstar
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is up 5 5/64 to 51 1/4 after being added to Goldman
Sach’s recommended list. The GMST November 50 calls are up 1 13/16 to 2 7/8 on
more than five times the average call volume.

Starwood Hotels
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is up 2 1/8 to 34 1/8 on news it will be added to
the S&P 500. The HOT December 35 calls are up 1 5/16 to 2 1/8 on more than
5000 contracts.

Ariba
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ARBA |
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is under pressure, falling 6 1/4 to 85 3/4 while the ARBA
November 90 calls are down 3 5/8 to 2 on more than 1200 contracts.