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To: Jorj X Mckie who wrote (24837)	2/3/2003 7:02:50 PM
From: Perry Ganz	Read Replies (1) \| Respond to of 57110

P/C spike Thanks to alohamart on Zeev's thread This is from a DJ options report at 15:31: "The ratio of equity puts traded to calls spiked. While this usually indicates mounting investor caution and is considered a bullish signal by contrarians, Monday's heavy put volume was accounted for by an unusually large put trade involving long-term puts on the QQQ, or Nasdaq 100 Tracking Stock, expiring 2005. Specifically, an institutional investor bought more than 110,000 contracts of the January 45 puts expiring 2005, while selling a roughly similar number of the January 55 puts expiring 2005. It isn't immediately apparent what drove this trade. The QQQ most recently was ahead 12 cents to $24.56. Its January 45 puts expiring 2005 were at $20.40 as 121,001 contracts traded at the CBOE and the American Stock Exchange. The January 55 puts expiring 2005 were at $30.30 as 112,750 contracts traded at these two exchanges."

To: Jorj X Mckie who wrote (24837)	2/4/2003 1:53:29 AM
From: mishedlo	Read Replies (1) \| Respond to of 57110

The P/C ratio towards the close is an enormous distortion of MEANINGFUL reality. Someone aparently did an enormous bear put spread of deep ITM 2005 leap puts. 45's and 55's. Remove that trade an the ratio was closer to .68 or so. I do not believe such a deep ITM play affets Max pain at all, or if it does not till 2005 and I will worry about it then. The best guess is that it was a credit spread retuning a fair chunk of change to some huge player. A poster on SI figured out it was a way to collect interest on a huge amt of $ more or less risk free. Is there much chance to get to QQQ 45 by 2005? I doubt it. More than likely, if the QQQ falls far enough, a portion of the trade will be closed hoping for a rise in the QQQ. PC ratio today is a total mirage. That is why I perfer to look at OI and only view P/C on a MA basis. This monstrosity unfortunately might distort the MA for a few days. Of far more importance is the buildup of QQQ puts in March. If we go down hard now, we can have one heck of a snapback in March. M