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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (9219)	11/5/1997 10:00:00 PM
From: GuitarMan	Read Replies (1) \| Respond to of 94695

Unusual market activity ahead ? Huge solar flare could affect satellites - NOAA WASHINGTON, Nov 5 (Reuters) - A massive solar flare that burst off the Sun is likely to spawn a geomagnetic storm that could affect satellites, the U.S. National Oceanic and Atmospheric Administration (NOAA) said on Wednesday. The flare, detected as it occurred at about 1:58 a.m. EST (0658 GMT) on Tuesday, was rated as a class X, the highest intensity classification, the NOAA said in a statement. Forecasters at the government's Space Environment Center predict that activity in Earth's magnetic field will increase over the next few days, with the geomagnetic storm reaching its greatest intensity on Friday. The aurora borealis, or Northern Lights, are likely to put on a show this week at northern latitudes in the United States, the forecasters said. However, power systems will probably experience only isolated effects, while satellites may experience surface charging, which can result in arcing between parts of the satellite. Very large geomagnetic storms can cause communications problems with satellites and interfere with high frequency radio communications. U.S. and European spacecraft will detect any such storms about one hour before they reach Earth's magnetic field. Forecasters said this flare, which is many times the size of Earth, ushers in a new cycle of solar flare activity which is likely to increase over the next two to six years.

To: Joseph G. who wrote (9219)	11/5/1997 10:04:00 PM
From: Bilow	Read Replies (1) \| Respond to of 94695

You have to look at the underlying security. In the case of options on indexes, the underlying security is a future. The future prices are warped to the up-side, consequently, there is no big difference between the call and put prices. You might, on the other hand, want to know why the futures contracts trade at such a premium to cash... In other words, the same arbitrage I mentioned holds, but you have to hedge with the the index future. This eliminates the potential for profit. Change of topic. A Ferengi reason for not offering options in the middle of the spread: #85 Never let the competition know what you're thinking. -- Carl