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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (83753)	6/24/2002 6:54:21 AM
From: Steve Lee	Read Replies (3) \| Respond to of 99280

Zeev, what do you think of this: "I began to notice a strange but consistent pattern. Increased volume in high-priced options tends to be a contrary indicator. But higher volume in inexpensive options usually is a leading indicator. Thus, before advances, volume typically increases in low-priced calls and high-priced puts. And before market declines, volume increases in low-priced puts and high-priced calls." It is from a 1983 Barron's article by Jim Nissen. I found the article while looking for any studies that involve dollar weighted P/C ratios, rather than just counts of contracts traded.