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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (5929)	12/22/1997 10:52:00 PM
From: Alias Shrugged	Respond to of 95453

My guess is the MMs are short these puts; ie, investors/institutions have purchased puts, either to hedge their long stock positions or to simply bet on a decline. it certainly reflects the change in sentiment, as there were mostly calls being bought/sold previously. In some ways, all of these long puts could be viewed as a contrarain indicator, but I personally don't thnk so. one thing it will do is add to the volatility. As the stock declines, the MMs need to dynamially hedge all of the puts they are short, by selling more stock. On the other hand, once the stock starts moving up, the MMs will buy stock since more of the puts will fall out of the money. This sector is dead until the uncertainty of oil prices and long term demand for drilling/services/day rates is resolved. Things could turn on a dime (ie, the Saddam factor), but I would not bet on it. I will invest/trade once the picture begins to clear. Mike