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Strategies & Market Trends : Tech Stock Options

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To: Electric who wrote (35920)	3/4/1998 12:27:00 PM
From: Patrick Slevin	Read Replies (1) of 58727

I used to trade OEX off the futures motion, if that's what you are speaking of. Since the split, I have engaged in various e-mail discussions pro and con on whether the OEX is worth day-trading any longer. I was one of the minority that voted "Nope". I would imagine it could still be traded successfully if one were to triple the number of options per trade. At least that was part of the logic of the other camp. But to get back to the question, changes in PREM and resulting changes in SP8H always has "some" effect on OEX options. Because the OEX is now half the SPX, the effect is not as easily perceived. Perhaps the SPX options would be the way to go, but slippage seems to be greater in the S&P 500 pit. Also, the SPX pit is dominated by the institutions whereas the OEX is for the "little guy". So that "slippage" can "slip" purty durn fast. Having seen the SPX option traders close up, I would not doubt that these people would scare Jack the Ripper if he walked in to make a trade. So I never traded SPX options, as the OEX crowd was tuff enuf.

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