Microsoft Calls Rise; Nasdaq Rally Continues

Following Thursday’s big gains, the Nasdaq is again working its way higher
Friday, as Internets and networkers lead the way. Broker/dealers and Internets
are the day’s strongest sectors while retailers and forest and paper products
are the weakest.

At mid-day, the VIX is down 1.56 to 26.61.

The OEX October 740 calls are up 3/4 to 2 1/2.

Among bigger movers on heavier-than-average volume:

Microsoft
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continues to bounce back and has gained 4 to 65 7/8.
The Microsoft November 60 calls are up 2 7/8 to 7 1/8 on more than 14,000
contracts.

AT&T is also rebounding from recent lows, climbing 1 5/16 to 26 1/8. The
AT&T November 25 calls are up 13/16 to 2 3/4 on more than 11,000 contracts.

Corning
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has added 7 13/16 to 103 while the GLW October 100 calls
have gained 3 1/2 to 3 7/8 on more than 3400 contracts.

SDL Inc.
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has gained 41 1/4 to 330 3/8 following a strong earnings
report. The SDLI October 320 calls have jumped 13 3/4 to 15 3/8 on
heavier-than-average volume.