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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Patrice Gigahurtz who wrote (83284)	7/6/2002 2:24:45 PM
From: augieboo	Respond to of 99985

My guess is the positions Mish was closing out were shorts, (but you'd have to ask him to be sure), since he mostly plays the "dark side" these days, except for around options expiration. He's Da Man on issues related to options expiration and "Max Pain," i.e., the tendency of certain issues, particularly QQQ, INTC, and a few others, to rise or fall during options expiration week to a level which will cause the greatest possible number of options on those issues to expire worthless. Because he's spent so much time studying options expiration-related issues, he knows quite a bit about P/C ratios. And he insists that the only P/C ratio with any relevance is the equity-only ratio. Actually, come to think of it, he doesn't think too awfully much even of that one, preferring to look directly at open interest. UGH! Now I'm confusing myself! (I hate when this happens.) Okay, the point is, the options P/C ratio, which is what StockCharts reports, isn't worth a hill of beans, and if you want to know why, Mishedlo can tell you. As for me, I think I'll go brew another pot of coffee -- apparently not enough caffeine in the first one. <ggg>