Hewlett Packard Calls Fall; Stocks Sink

Apple’s earnings warning sank stocks Friday, as all three major averages
failed to overcome a big dose of negative sentiment. Top sectors of the day were
chemicals and oil services while semiconductors and technology were the weakest.

By the close, the VIX had increased 1.90 to 23.85.

The OEX October 780 calls fell 5 1/8 to 7.

Among bigger movers on heavier-than-average volume:

Hewlett Packard
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was the weakest stock in the Dow, falling 6 5/16 to
97 1/2, The Hewlett Packard October 105 calls fell 3 15/16 to 2 5/16 on triple
the average volume.

Research In Motion
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jumped 15 1/8 to 98 9/16 after topping
earnings estimates. The RIMM October 95 puts fell 8 3/4 to 6 3/4 on quadruple
average volume.

Nortel Networks
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fell 2 1/4 to 59 1/2, reversing Thursday’s gains that
it had despite an analyst downgrade. The Nortel October 60 puts fell 8 3/4 to 6
3/4 on quadruple average volume.

Apple Computer
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finished down a crushing 27 3/4 to 25 3/4 while
the Apple October 57 1/2 puts soared 22 1/2 to 31 3/4 on more than 6000
contracts.