SWCM Calls Rise; Market Sells Off

A slightly higher-than-expected CPI number Tuesday triggered a round of
profit-taking that took the Nasdaq down 2.3%, the Dow down 0.6%, and the S&P
500 down 1.1%. Chips and Internets were the weakest sectors while oil services
and consumer stocks were the strongest.

By the close, the VIX had increased .49 to 22.55.

The OEX 810 calls fell 5 1/4 to 6 3/4.

Among bigger movers on heavier-than-average volume:

Software.com
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rose 4 57/64 on word that Alltel will use the
company for its messaging service. The SWCM July 130 calls rose 2 3/4 to 3 1/2
on five times the average volume.

Procter & Gamble
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gained 2 1/8 to 58 1/4 while the Procter &
Gamble July 55 calls rose 1 9/16 to 2 7/8 on more than five times the average
volume.

Intel
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fell 3 5/16 to 143 ahead of its earnings announcement due
out after the bell. The Intel July 140 puts gained 11/16 to 2 13/16 on nearly
9000 contracts.

Microsoft
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rose 5/16 to 78 1/2 ahead of its earnings announcement.
The Microsoft July 85 calls lost 1/8 to 3/8 on nearly 18,000 contracts.

Looking ahead, June’s housing starts and building permits reports will be
released Thursday at 8:30 AM ET.