Microsoft Calls Soar; Nasdaq Flies

Strong earnings from some of the big-cap techs have helped ignite a 6% Nasdaq
rally Thursday, as semiconductors and broker/dealers lead the charge. The
weakest groups of the day include drugs and chemicals.

At mid-day, the VIX is down 3.16 to 29.34.

The OEX October 720 calls are up 7 3/4 to 10.

Among bigger movers on heavier-than-average volume:

Microsoft
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topped earnings estimates and that has pushed the stock
up 9 3/8 to 61 1/8. The Microsoft November 60 calls are up 2 5/8 to 4 on more
than 11,000 contracts.

Avanex
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has jumped 29 1/8 to 119 1/8 following
better-than-expected earnings. The Avanex October 115 calls have jumped 6 3/4 to
7 1/2 on triple the average volume.

Micron
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is up 5 1/4 to 33 13/16 in a rebounding chip sector. The MU
October 35 calls have added 9/16 to 3/4 on more than 8000 contracts.

Cisco
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is up 5 to 57 1/4 and is helping lead the Nasdaq rally.
The  Cisco October 55 calls are up 2 3/8 to 2 7/8 on heavier-than-average
volume.