Morgan Stanley Puts Soar; Stocks Slide

Stocks are lower Thursday, with the Nasdaq taking the brunt of the morning’s
decline. Broker/dealers and semiconductors are the weakest groups, while drugs
and retailers are the strongest.

At mid-day, the VIX is up 1.08 to 23.85.

The OEX October 800 calls are down 2 to 8 1/2.

Among bigger movers on heavier-than-average volume:

Morgan Stanley Dean Witter
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fell short of earnings estimates and is
down 10 1/8 to 85 7/8. The MWD October 80 puts are up 4 5/16 to 7 on triple the
average volume.

Also weak in the broker/dealers is Merrill Lynch
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, down 3 3/4 to 62
7/16. The Merrill October 60 puts are up 1 5/16 to 2 11/16 on triple average
volume.

Chase Manhattan
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is off 1 1/16 to 45 7/16 as financials edge lower.
The Chase October 45 calls are down 7/16 to 2 3/8 on heavy volume of more than
5000 shares.

America Online
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has seen a big jump in volume on its November 55
calls, which are up 1/8 to 4 on 20,000 contracts. AOL’s stock is up 5/16 to 55
1/4.