Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ajtj99 who wrote (24879)	11/27/2001 4:54:02 PM
From: Paul Shread	Respond to of 52237

No, because the goal of the houses and funds in those trades is to finish as much in the money as possible, and at a minimum to break even. They use them to drive the market higher via arbitrage. The average price of the September futures was probably 10,200; when the market closed below that level, the selling accelerated. They defended that level all summer, and when they couldn't hold it, they had to sell to cover their losses. I don't do this kind of trading myself; someone I know has done a lot of work for the big houses in this area.