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Strategies & Market Trends : Tech Stock Options

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To: Nemer who wrote (50161)8/18/1998 1:24:00 PM
From: Electric  Read Replies (2) of 58727
 
Nemer,

Interesting take..

My 2 cents on the topic.

What you are saying is correct if the SP8U trades higher at the open, enough to cover the lower close.

What if the futures are negative? How does that change your senario?

I think you are right about the buying of the cash to settle accounts, like they were short for the day and are closing? That sounds plausible in this market setting.

One other thing.. The degree of the sell-off is in relation to those buying the CASH at close, so maybe the degree of the decline gives an indication of what percentage were short? (I am assuming short, or inbalanced in the futures contract?-- not sure on that part)

And in normal contidions, the PREM closes relatively close to CASH when there are less shorters? And it closes up when there are more longs?

What are the rules of keeping the contract on the futures or cash open then? Do all have to settle, because I know that isnt the case for traders that do it here, like TT and Pat, although they trade futures.

More confusion? I hope so... :}

What I need is a scratch golfer as a best friend, to straighten me out... or somthing..
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