NUFO Calls Fly; Techs Slip

Following the Fed’s 50 basis point rate cut, the Nasdaq sold off for a 2.3%
loss for the day while the Dow ended slightly higher. Retailers were the day’s
top sector while Internets were the weakest.

At the close, the VIX had decreased .91 to 24.29.

The OEX February 720 calls ended down 2.20 to 11.00.

Among bigger movers on heavier-than-average volume:

New Focus
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gained 10 13/16 to 60 3/16 following its
better-than-expected earnings report. The NUFO February 65 calls closed up 2 5/8
to 4 on heavier-than-average volume.

Microsoft
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fell victim to the late selling and dropped 2 5/16 to
61 1/16. The Microsoft March 65 calls fell 1 to 2 on more than 6000 contracts.

AOL
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slipped 1.75 to 52.56 following its better-than-expected
earnings report. The AOL February 50 puts gained .40 to 1.65 on more than 7500
contracts.

Adobe
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fell 9 1/16 to 43 11/16 following an earnings warning. The
Adobe February 50 puts soared 4 5/8 to 7 5/8 on more than 2000 contracts.