I called PHLX as soon as I saw this and got the word straight from them: Yep, it is indeed MU they want. They gave the same reason Larry came up with: MU owns most of MUEI.
But that is not logical. MU owns most of MUEI, but MUEI is not most of MU's business. MUEI moves more like the other box-makers, MU moves more like a contract for 40 tons of soybeans.
The guy at PHLX tried to blow a few smoke rings over my head, "MU owns most of MUEI, and MU is a more liquid and higher-capitalized stock like the rest of the ones in the index", "MU is a more active stock", etc., until I stopped him and said, "Look, we're both grown-ups -- MU is more volatile than MUEI, that makes the index move like hell for no reason whatsoever, and that's good for option writers, and that's you!"
That stopped him. "Yes, that's essentially the case," he said. |
