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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: James F. Hopkins who wrote (12828)5/28/2000 9:19:00 PM
From: Casaubon  Read Replies (3) | Respond to of 14162
 
it's hard to explain but not all strikes act alike , and the same strike can act different at different times ( even though the stock price does the same sort of move ) in other words "demand" for some strike may be a lot more at times when everything else looks equal or it might be a lot less..the supply/demand does not always coincides with the stock moves and every strike can have "it's own little subset of traders.." the traders and demand are what I "try" to figure out.

I don't have any proof but through observation and anecdotal evidence, I believe the activity levels of certain strikes during certain months is evidence of insider activity. I don't think it is actually officers of the companies but rather fund managers or other big money with for-knowledge of an upcoming event which will influence the value of a company.
I have been observing a low float company to assess the level of insider trading, and the options market has very strong correlation, many months in advance, to news items which materially impact the company.