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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (16047)	5/18/2001 9:43:03 AM
From: TREND1	Read Replies (1) \| Respond to of 30051

Zeev: Here is a question for you via my email list. ........... Larry, I like to ask you a question knowing that you may not answer this. On the Steve's channeling thread (I started visiting after you mentioned it), Zeev made a remark that the very high P/C ratio on DJX before the blow up as unusual. I do not know if you look at these indicators, but I am confused. In my mind, the entity that sold PUTS benefits when the market go up because the PUT expire worthless (because the poor guy who bought the PUT can sell the underlying security at a higher price in the open market). Usually the options (PUTS or CALLs) are written by "big" investors to protect the investment, or to make additional money. So, assuming the "big guy" has written PUTS more than CALLs (so, P/C ratio high), then the "big guy" will benefit from the market rise. What am I missing here. Can You explain ? (I cannot post to Zeev because I do not have SI membership). May be you can shed some light. Please ignore if you do not look at the options interests. I am just trying to learn. Thanks in advance. Mahi