A Discussion re. Memory: MU CY TXN ALSC IDTI ISSI etc. Message Board

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Technology Stocks : A Discussion re. Memory: MU CY TXN ALSC IDTI ISSI etc.

TXN 176.88

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Dec 26 9:30 AM EST

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To: Mike who wrote (110)	12/17/1996 1:17:00 PM
From: Jaime H. Ayalde	of 138

An index has no volume!!! Volume is created by the options traded on expectations of its movement. Therefore actual volume on IDTI & CY has no effect on the volume on the SOX. IDTI & CY have low valatility which in turn decreases value of options. The number ONE factor in pricing options is volatility. The public is paying 80% for options on MU, while IDTI commands less than 20%. The floor makes their money on writing options. The higher the premium they can charge (public willing to pay) they higher the odds that they (the house) will make money. What are the odds that you are going to make money buying MU option when you are paying 80%. High premiums attract the professionals which creates the volume. The PHLX makes $2.00 every time an option is traded. They do not care to provide a true reading of the Semi Industry. They want Money. Unfortunately it is at the publics expense. Jaime techstocks.com

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