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Strategies & Market Trends : Tech Stock Options

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To: Jerry Olson who wrote (32659)1/9/1998 3:45:00 PM
From: ViperChick Secret Agent 006.9  Read Replies (1) of 58727
 
Oj

the hell it wont effect you or I

a program sell hits

Kevin has a tight neutral zone

the premium for puts is jacked

the market goes to his buy point for puts...he pays a higher prem than normal

the market whipsaws him (just happened to him recently .whipsawed him back and forth...but dont know if it was because of a buy/sell program)

why does the market whipsaw him

because it was a tight neutral zone...the market goes back up after the sell program...and the prem is stripped from the put more than normal because as Kevin indicated they jack the prem on a buy/sell program

can you understand now?

not saying it happens all the time

i am saying there is a potential

(not to mention the problem with making a profit on OEX anyway..and why traders are bailing on it)
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