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Strategies & Market Trends : Tech Stock Options

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To: Jerry Olson who wrote (42756)5/8/1998 2:02:00 PM
From: Tom Trader  Read Replies (1) of 58727
 
>>SPX 1109....SPM 1113 thats a premium to the cash, hence we should continue to move ahead from here... <<

Not necessarily; the futures are invariably at a premium to the cash. When it exceeds fair value by a certain level, then buy programs kick in. I generally don't worry about FV -- though others do. At expiration --futures and cash are equal.

I think lisa or someone posted a site which explained the FV concept in a lot of detail--but that would probably be more detail than you would ever want:)
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