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.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (3748)	6/30/2002 1:05:43 PM
From: Berk	Respond to of 95490

Bob and Alastair, I think that you have to be a bit sceptical of p/c ratios. Always keep in mind that there is another side of the trade: if a MM sells a put he is delta long which means he has to sell short some number of calls or buy calls and ss the stock to be delta neutral (neither net long nor net short). If the stock does decline, this will have to be adjusted to accommodate it by selling more calls if he chose to ss them. I think that open interest may a better indicator but even that is questionable due to the missing "other side." The open interest on ALTR last month was substantial in the out of money puts but the stock still declined.