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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Stephen M. DeMoss who wrote (32488)11/5/1999 7:20:00 PM
From: pater tenebrarum  Respond to of 99985
 
Steve, doesn't really matter to me...i regard the sellers of the naked calls as 'smart money' in any case. unfortunately i didn't check the changes in open interest....that might have given us a clue to what's happening, likewise whether the options went off at the bid (sells) or ask (buys). probably it was a mixture of both anyway. most striking was the fact that call volume at mid-day seemed to exceed put volume by nearly a 10:1 margin.

regards,

hb



To: Stephen M. DeMoss who wrote (32488)11/5/1999 10:28:00 PM
From: Casaubon  Respond to of 99985
 
I guess the thing to do would be to see how the call prices for the day compared with call prices previously sold two weeks before expiry (I'm assuming the calls were for NOV expiration). If the calls were priced comparitively low, one could conclude someone sold with the "expectation" (knowledge), that they would expire worthless.