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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (23161)	5/18/2000 2:19:00 PM
From: OX	Read Replies (1) \| Respond to of 42787

hi Gersh. i think the 'cheapness' you are seeing in the SPX is due to the fact they are european-style expiration... they don't, in general, command as much premimum. the delta's are all inline if you look at each as a function of time-2-expiration and how far they are ITM/OTM. (depending on when you did the calc, OEX + SPX were probably ATM and QQQ was OTM), accounting for the differences. QQQ has been more volatile than SPX or OEX so that's why prems are richer. and as far as 'fair value', it depends on how one factors in the current volatility parameter. that said, it looks to me like the mkts are being distributed. i have a shortterm downward bias, but it could easily head a tad higher before beginning a larger down move. if you aspire to the 'maxpain' theory, you'll notice a lot of issues are right at their 'maxpain'. especially SPX which has its highest concentration of OI for May at 1450 on calls and puts. (practically speaking, SPX expires tmo after the open, so the move can start as soon as midday tmo).