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To: Jim Willie CB who wrote (1331)	8/29/2001 6:22:55 PM
From: Sun Tzu	Read Replies (2) \| Respond to of 2505

As you have pointed out, option premiums are a measure of implied volatility. My point is that the volatility premium like everything else is a function of supply and demand. Look at it this way, if I want to unload more calls than the market will bear, I am forced to lower my option premium to very low levels. That would in turn show as low implied volatility. You could then argue that I am being complacent and am holding on to the stock in the belief that it will not go any lower than my [small] option premium. But one could also argue that I am being complacent on the upside and do not see much chance of the stock moving up. Normally low VIX levels are associated with complacency. I am simply providing an alternate view point for these unusual times. regards, ST