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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (11569)	11/2/2003 12:20:34 PM
From: Kirk ©	Read Replies (3) \| Respond to of 206757

This week's VIX was the lowest in almost 7 years. I wonder if any of the traditional indicators like VIX and Put/Call ratios will mean anything now? It occurred to me that hedge funds are probably short the securities that make up the majority of Putnam Funds and then they hedge this with SPY buying. For example, you can buy $10K in puts for each of the top 10 stocks at Putnam then buy $100K in SPY calls to remove market risk. You then have a portfolio that is market neutral but bet aginst Putnam Holdings. If you are only measuring index options... then you miss this effect.