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Strategies & Market Trends : Tech Stock Options

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To: Jerry Olson who wrote (42740)5/8/1998 1:55:00 PM
From: Tom Trader  Read Replies (1) of 58727
 
>>your signal came on the Futures?? SP8M???

Yes--it did

>The S&P 500==SPX right??? whats the connection of the SPX numbers and the SP8M???? <<

It's complicated -- but basically the futures key off the SPX and equate to the SPX+fair value. When the futures trade at an amount that is a certain level in excess of the SPX+ fair value, buy programs kick in and sell programs kick in when the vice-versa occurs.

The above is a very brief explanation -- hope it makes sense. I once explained it in greater detail on the kahuna thread to some one.
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