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Strategies & Market Trends : Waiting for the big Kahuna

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To: James F. Hopkins who wrote (19214)5/27/1998 12:25:00 PM
From: paulmcg0  Read Replies (1) of 94695
 
Or, you could be in my situation of not being able to pull off a trading strategy.

I have a model I created with Mathcad, for doing the heavy number crunching required for Black-Scholes analysis of options. I fed in a table of data on the NDX (Nasdaq 100), tracking the last years worth of activity, before the market opened yesterday, and compared the results against various options prices. The big players in this market are expecting a sharp correction, because -every- put that has an open position on the NDX is way overpriced per the Black-Scholes equations.

Paul M.
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