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Biotech / Medical : Conceptus (CPTS)

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To: telephonics who wrote (31)12/24/2001 12:05:00 PM
From: Toby Zidle  Read Replies (1) of 96
 
The listing of CPTS options on the AMEX is slightly positive.

First, it means that CPTS passes a volatility threshold. Stocks that are non-volatile have no appeal to options traders, so would be undesirable for listing. Whether volatility, per se, is positive or not is up to your own interpretation.

Second, it probably indicates some statistical measure of long-term uptrend. Since call volume overwhelms put volume, a laggard stock is less likely to generate enough option volume to justify a new options trading listing. Thus, trend prospects for CPTS must be positive.
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