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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: Tim O. who wrote (381)	5/17/2000 1:12:00 AM
From: Mark Z	Read Replies (1) \| Respond to of 10876

Good name!! 'Volatility Contraction Play'...I like that!! I go with my rule of thumb time periods. I do watch VIX closely but it doesn't influence anything I do on the VCP. As it turns out, VIX didn't move much today in the hour following the Fed announcement although that's not always the case. The rationale for opening the play within 1/2 hour or so of the announcement is I don't want too much movement in the OEX prior to the announcement. As it turns out today there was little/no movement for the 2-3 hours leading up to the announcement but that's not always the case. And, of course, the reason for closing an hour or so after is to give the market a chance to retrace whatever initial move it makes.