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To: pater tenebrarum who wrote (97866)	4/25/2001 1:35:22 PM
From: John Pitera	Read Replies (1) \| Respond to of 436258

Interesting rumor on the hedge fund position. Bill M has an interesting note on the VXN high reading: MARKET 4/25/01 1:12 PM ET I’m getting quite a few e-mails asking me what I think about the new high in the VXN, which is, in the CBOE’s words, "constructed so that, at any given time, it represents the implied volatility of a hypothetical at-the-money NDX option with thirty calendar days to expiration." I prefer to use the QQV, which is the actual implied volatility on QQQ options. It's a more accurate measure, IMO, since QQQ options are very heavily traded and reflect real prices. Its movement also shows more rational behavior given the moves in the NDX. There's little reason to believe that on a day like today that the VXN's 4.5%-plus increase earlier accurately reflected reality. QQV remains high at 75.5 or so, but some of that is a function of volumes increasing for calls, which were actually a bit more expensive than puts.