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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (1444)	10/27/1999 12:19:00 AM
From: Lee Lichterman III	Respond to of 2103

>>As I recall, you weight/adjust yours differently based on extreme OI that is too 'far away'.<< Yes, I take into consideration the far away strikes only to the extent of "what if they are too far off" or "if they miss, which way would they rather miss". Such as right now, the OI is extremely weighted to the put side and it gets heavier the farther down you go. There are roughly 8000 and 9000 more put contracts than calls around 650 and 640 respectively. There are 10,000 more puts at 600 and 9000 more at 595. On the opposite side, the most total call contracts are around 6000 at strike 710 and 740. Calls and puts are even around 685 and 665 but puts outweigh calls slightly in between for 2 out of the 3 strikes. Puts win easily anywhere below 670 and calls get the nod by a smal margin anywhere above 690. Therefore if they are going to miss, they want to do so to the upside and dont want to let it fall out of control. Some error is allowed of course since many of these contracts were sold long ago when the time premiums were huge. Also with hedging, short term scalping and short selling etc there is always the risk that a month can go well outside the zone and still be mute but as a general rule, the more profit the better. It would be like us saying well I know it will fall another 100 points but I got 5 so I will sell and be happy, yeah right <g> Keep up the good work, I read you every day and it helps to keep me close. My way is harder to do so I am lucky if I do it once a week until the week of expiration. Good Luck, Lee