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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (30688)	12/9/1997 11:33:00 AM
From: Esteban	Read Replies (2) \| Respond to of 58727

Buenos dias senora, According to the chart I'm looking at the PREM only got below .32 at the open, which often happens till the cash catches up to the earlier traded futures. FWIW, since around 10:00 we've been trading below fair value more than above it with the MA below fair value. I'm losing enthusiasm for this indicator, other than as a way to track the futures prices without having futures quotes. It seems Patrick has certain times when he expects program selling to kick in, and uses these times along with the PREM value to get a better entry price for a position he's taking for other reasons. Correct me Patrick, if I'm off base. As for predictive value of index prices, it's value has been eluding me. PREM seems to be a good forecasting tool only for the arbitrage trading. Esteban

To: ViperChick Secret Agent 006.9 who wrote (30688)	12/9/1997 5:28:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

That's interesting. To use Kevin's analogy one might say it was a head fake. They brought it down hard on the low spread then rallied it into midday. I did not notice that. I was looking for a pattern that could best be described as "low-high-low-bounce". But except for the last low I missed all of 'em; so much for predictive analysis. EDIT....In a manner of speaking, I did outline the concept over here before the open Message 2914142