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To: Juniper who wrote (1232)10/27/1997 10:46:00 PM
From: LLCF  Respond to of 2946
 
<. Is this determined by purchases of contracts during the day or the price swing in the underlying?>

Basically the put and call implieds should be roughly the same...the difference you see is the market "leaning" one way or the other...or the stock price you use to figure these 'implieds' (ie. a call option trading @ $2 would have a higher implied if the base stock price used was 25 than 25 1/4). The important part is: am I paying 100 volatility for calls or 70???? (for example). Implied volatility thoughout the market EXPLODED today! If you want upside or protection (puts) YOU PAY!!! I told someone yesterday be careful of the price they pay for puts....today it didnt matter.....however if your wrong on the direction you are definitely going to pay now with the price on ALL options...index or otherwise!

DAK