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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (79959)	4/21/2000 5:48:00 PM
From: yard_man	Read Replies (1) \| Respond to of 132070

MB. I was recently at a conference where a broker for electrical energy options spoke. He kept saying that in the current market it is almost always much cheaper to establish the synthetic long calls position. If that were true wouldn't that mean there were a heap of money to be made in some kind of arbitrage ... have you ever looked at these? If you like volatility premiums ... you should check 'em out. They might not have all the liquidity that you're used to, but you said you were a gambler at heart <VBG>

To: Knighty Tin who wrote (79959)	4/21/2000 5:52:00 PM
From: yard_man	Read Replies (1) \| Respond to of 132070

You say the premiums have been fat -- what do you mean? When in recent history have we had such moves in the indices? Coming out of Dec and Jan I thought the reverse --we've had huge moves in the underlying and the options are still priced way low (one of the reasons I started buying puts then -- in hindsight the ones on LU and DELL were cheap <g>) -- admittedly premiums have gone up lately, but the rise in premiums seems at least a little bit justified by recent market action ... Do you have a more quantitative way that you judge on your own? I'd certainly be interested in your approach ...