WorldCom Calls Rise; Market Lifts

Ahead of the Fed announcement on rates, stocks are trading higher in
Wednesday action, with transportation and gold and silver performing the
strongest. Weak sectors include forest and paper products and chemicals.

At mid-day, the VIX has increased .11 to 24.99.

The OEX 820 calls are unchanged at 5 5/8.

Among bigger movers on heavier-than-average volume:

WorldCom
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is up 5 to 44 11/16 despite the apparent blockage of its
proposed merger with Sprint. The WorldCom July 42 1/2 calls are up 2 3/8 to 3
3/8 on triple the average volume.

Apple Computer is up 1 1/8 to 55 7/8 while the August 55 calls have gained
1/2 to 4 7/8 on nearly 3000 contracts.

Peregrine Systems
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has gained 1 7/16 to 29 9/26 on news of an
e-commerce alliance with Boise Cascade
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. The Peregrine August 35 calls
are up 1 1/4 to 2 3/16 on triple average volume.

BEA Systems
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is up 4 3/16 to 43 1/8 after being chosen as one of
Lehman Brothers "Uncommon Values" stocks. The BEA Systems July 45
calls double average volume.

Looking ahead, the big wait is over shortly, as the Fed will announce its
rate decision at 2:15 PM ET.