Microsoft Puts Jump; Stocks Sink

Technology stocks are taking it on the chin Wednesday, sending the Nasdaq
down more than 2% despite earnings that continue to come in
better-than-expected. Banking is the top-performing sector while Internets and
airlines are the weakest.

At mid-day, the VIX has increased .57 to 23.12.

The OEX 810 calls are down 3 1/4 to 3 1/4.

Among bigger movers on heavier-than-average volume:

Microsoft
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is off 4 7/8 to 73 5/8 despite beating earnings
estimates. The Microsoft July 80 puts are up 3 to 6 on heavier-than-average
volume.

Commerce One
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is down 7 9/16 to 59 as B2Bs shed some of their
recent gains. The Commerce One July 60 calls are down 5 3/8 to 2 5/8 on
quadruple average volume.

Tellabs
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topped earnings estimates but has fallen 3 7/8 to 69 3/8
nonetheless. The Tellabs August 80 puts are up 5 1/8 to 12 1/2 on more than 3000
contracts.

Qualcomm
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has lost 2 9/16 to 69 9/16 while the Qualcomm July 60
puts are up 7/16 to 1 9/16 on more than triple average volume.