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Strategies & Market Trends : S&P Index Futures (Daytrading SP)

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To: ratan lal who wrote (11)	11/26/1997 10:50:00 AM
From: Patrick Slevin	Read Replies (1) of 350

"spoo" is a nickname for the near month in S&P futures. I believe it is derived from the Sept. contract, "SPxU". VIX is a measure of volatility in OEX options. If I remember correctly, it's based on premium in 8 contracts. The 2 near calls and near puts in the current month and the same 4 in the next month. A discussion can be found @ cboe.com More interesting insight on VIX was posted here this morning. Message 2821338 ....in the discussion is information on what could happen with a high VIX. A high VIX, which until recently was usually below 20, means high premium in options. One can write calls or puts to take advantage of this premium...you should just hedge with a butterfly or some type of spread to reduce losses if the position goes awry. I'm not really doing anything...I do have a small short side position on, just to keep my hands in. But I will certainly go flat no later than Friday.

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