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To: MythMan who wrote (333723)	4/13/2007 4:00:56 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 436258

mkt is untouchable

To: MythMan who wrote (333723)	4/13/2007 6:19:20 PM
From: Real Man	Respond to of 436258

finance.yahoo.com I look at options OI directly. QQQQ is not allowed to drop below 44 for April. For May it looks like 45 now - there are more 45 puts than calls. finance.yahoo.com June is 45 marginally as well finance.yahoo.com Tons of puts sitting at 44 and 43, for every month. These are just computers buying. As time elapses, less hedging of these puts is required. It can go the other way too - as volativity increases, more hedging is required. That was so 1987, though - computers are smarter nowadays. -g- As long as the Fed prints on time, the latter does not happen. Wall Street for sure uses Black Scholes modified by volativity smile for options trading, which is done by computers. It's a money maker. Money for nothing, chicks for free... In front of the steamroller, of course, since on rare occasions it can go the other way all the way, and the same computer models will crash it -g- So, here is a new strategy - when it goes the other way, the banks go to the Fed. -g-

To: MythMan who wrote (333723)	4/13/2007 6:41:00 PM
From: Real Man	Read Replies (1) \| Respond to of 436258

What was 2/27? Banks, GS, and others make sure their computers are very fast in calculating volativity as it changes. So, when there is a spike, they need to hedge all the mountain of puts that sits out there (that they have written) by selling futures, all according to the magic Black-Scholed formula that makes them money regularly on stupid bears, and rabid bulls. Thus, computers made the little drop a little faster -g- 1987 type crash today needs to happen a lot faster, before the Fed can respond. They are there to protect the "system", yet the protection itself causes moral hazard.