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Strategies & Market Trends : Tech Stock Options

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To: Michael Rich who wrote (22751)9/11/1997 2:31:00 PM
From: Kevin   of 58727
 
Hi Michael, how are you?

>>>Dec future is used for FV from today. FV=10.18, buy 10.78,
sell 9.3. <<<

Awhile back, I spoke with a friend who used to develop software for the arb traders at Salomon. He said that the arbs switch from one contract to the next one out as the volume picks up and equals or surpasses the volume on the current contract. That is almost happening right now. SPU = 123,055 SPZ = 92,715

Eyeballing the activity today, I'd say that the current contract is still in charge for now. The FV off of the SPU broke the lower bound around 11:15 and sent the market much lower. The FV off of the SPZ never came close to generating a sell.

Hope this helps.
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