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ORANGE COUNTY BRIEFLY

Allergan Options Trading Up Sharply

September 04, 1996

IRVINE — Allergan Inc.'s options for September and October jumped amid continued speculation that the company's shares will increase in value.

There were 1,000 call options traded giving investors the right to buy Allergan shares at $40 each before Sept. 21. The highest number of September $40 contracts traded previously was 685 on Aug. 27. There were also 1,414 call options traded giving investors the right to buy Allergan shares at $40 each before Oct. 19, up from 30 traded on Friday. The highest number of October $40 contracts was 765 on Aug. 21. Each option controls 100 Allergan shares.

Allergan shares fell 75 cents to $38.125.

Call options give investors the right to buy shares at a certain price within a certain time. By purchasing call options, the investor is betting that the stock price will rise above a certain level by a certain time.

Allergan said it is against company policy to comment on market speculation. There has been continuing talk that Pharmacia & Upjohn Inc. could renew acquisition talks broken off in May.

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