Semi Equipment Analysis Message Board

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Technology Stocks : Semi Equipment Analysis

SOXX 296.74

+1.8%

Nov 28 4:00 PM EST

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To: robert b furman who wrote (3748)	6/30/2002 1:05:43 PM
From: Berk	of 95487

Bob and Alastair, I think that you have to be a bit sceptical of p/c ratios. Always keep in mind that there is another side of the trade: if a MM sells a put he is delta long which means he has to sell short some number of calls or buy calls and ss the stock to be delta neutral (neither net long nor net short). If the stock does decline, this will have to be adjusted to accommodate it by selling more calls if he chose to ss them. I think that open interest may a better indicator but even that is questionable due to the missing "other side." The open interest on ALTR last month was substantial in the out of money puts but the stock still declined.

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