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Technology Stocks : S3 (Multimedia semi's place 2be)
SIII 0.00010000.0%May 12 5:00 PM EST
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To: Bronxnla who wrote (7699)2/1/1997 4:33:00 AM
From: chuckj   of 9477
 
Dr. B. Here is a prudent investor's take on options: because the shareholders of a company know more about the condition of the company than the people who do not own the stock, and, the fact that it is the share holder who writes call options, we can assess that when the volume on the call options are high, the shareholders are sure that their stock will not go above the strike price, or worse, go down. It is a known phenomenon: When the open positions in calls is high the stock usually does not move up.

On the contrary when the open positions in puts is low one can conclude that the stock may move up, because then again in uncertain times it is the knowledgeable share holder who buys (to open) puts positions to protect his/her ivestment.

A prudent investor assumes that the market is a legal operation and free of scandals. This may not be true all the time in the U.S stock market, but it is true majority of the time.
cj
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