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Strategies & Market Trends : Tech Stock Options

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To: waverider who wrote (53625)9/23/1998 12:00:00 PM
From: Lee Lichterman III  Read Replies (2) of 58727
 
As the VIX increases so does the fear in the market and so does the premium on puts. The lower the VIX, the lower the fear in the market and lower the premiums. Some people use the VIX as an indicator on the market. I don't know this use very well so maybe Lisa or someone else can explain it. I think they use it as a contrarian indicator in that if there is no fear, then the market can tank easier and faster since it will catch people off guard when the fall starts.

If this run continues much longer, the shorts are going to start hurting. Wasn't Jerry Favors talking about a long drawn out short squeeze rally a few weeks ago. I believe he said it would last longer than most thought and would be the last up move before the big drop. It must be working because I feel I am missing out on this run myself. <g>

Good Luck, I am going to have to go back to work soon. Just home this morning waiting on a long distance phone call.
Lee
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