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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.910.0%Nov 14 4:00 PM EST

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To: Haim R. Branisteanu who wrote (1472)12/12/1998 9:04:00 AM
From: donald sew  Read Replies (3) of 99985
 
Haim,

>>>>> Also the pricing of option in general are anticipatory e.g. if a turn in certain direction is sensed, the premium changes sharply accordingly. Those changes had helped me to guess movement in stocks many times. Is this phenomen present also in index option? <<<<<<<

I feel the premium changes in index options are more pronounced than in stock options, but thats just an opinion not based on any research. Depending on the index, I have seen huge swings in the premium and the spread, such as the spread on an OEX option jump immediately(within seconds) from 1/4 to 1/2 and on an NDX option from 2.5 to 4. Those huge swings are normally when the turn has been made. Leading up to a turn I have noticed more subtle changes.

Seeya

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