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To: Amelia Carhartt who wrote (56466)	8/15/1999 4:26:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

Susan, puts already got cheap - the VIX tumbled to 22,38 on friday. two interesting observations from options land: the put/call ratios remain high in spite of the rally, and OEX call open interest is greater than put o.i. - this is rare and suggests the following outcomes: a)either the writers of OEX calls are smart and we see another decline to test the recent lows or b) they underestimate the markets resilience and will have to hedge their positions by buying the underlying stocks, adding fuel to the rally. this is what happened in early July, we'll see if it happens again. for the bearish case to stay alive, the Dow has to turn soon, as the 0,62 retracement level has been reached. the SPX is concurrently right at the 0,38 retracement level. an interesting week awaits. regards, hb