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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (4316)	12/24/1997 12:13:00 AM
From: Chris	Read Replies (2) \| Respond to of 42787

Interesting email on put/call ratios: courtesy by Bruce Silvara: geocities.com I read an article in IBD today that I liked. It said that by following the ratio of trading volume in puts and calls can tell you a lot about whether the stock market is bullish or bearish. Research has shown that options players are usually wrong about the market. When they're extremely bearish,that can be a buy signal. And if they're very bullish, you'll want to proceed with caution. If you buy a call option, you're buying the right to buy 100 shares of a certain stock at a certain price by a specific time. You think the stock price is going to increase. Conversely, if you buy a put option, you're betting the stick will go down in price by the expiration date. When there's substantially more puts bought than calls, the options player's sentiment is bearish. But those who have tracked this indicator historically know that this is actually bullish. Indeed, on Oct. 27 the put/callratio hit a 12-month high of .84. The Dow Jones lost 554.27 points that day. Options traders were also on the wrong side of the market as it reached its peak in August. The put/call ratio hit a five-year low of .38 an Aug. 6. The next day the Dow topped. Right now the put/call ratio is at its yearly high\a bearish signal(see clipping down load). It will be interesting to watch this indicator vs. the market............

To: Chris who wrote (4316)	12/24/1997 6:17:00 AM
From: Cage Rattler	Read Replies (1) \| Respond to of 42787

Chris: No, I've been a high roller only once. Although I may be reckless on the personal level my investment attitude has evolved from exposure to respected individuals and their philosophies. These influences have ranged from Dr. Collander to a 9-figure friend in the business. Collander, for example, uses mutual funds and forgets about it. He said -- losely quoted, "Anything new you hear is old hat to Wall Street insiders." He had us watch the film "Barbarians at the Gate." I have never been sure. Anyone who is sure is probably deluding themseff. So "anymore" does not apply. I began investing as a kid with a few shares, about 50 as I recall, of RCC, Royal Crown Cola. That bold entry followed my sampeling their newly released "Dietrite" cola. Interesting times; I was close to the Dr. Peper, Pepsi, and Coke evolution -- of course, I sold out a bit earlier than I might have. Owning RCC was a personal pleasure. I actually felt like a member of the RCC team -- me and Jerry Lewis both on the same team; year-end reports included samples -- exciting times for a kid. From there I moved into quality, lower-cap chemicals (Atlas). I guess you could say I bought corporations, that were personally interesting -- companies I would really work for, companies I felt were positioned to produce. Greed wiped me out, totally out, about 15 years ago. Wednesday I had so damned many cocoa futures I felt like Hersey -- thousands and thousands of metric tons, all on maximum margin. Boy if that had swung the other way I'd be writing texts on commodity trading. Alas, I recieved the call Thursday -- "ALL holdings were gone" -- a margin call! The cocoa cartel stepped in to support the price; those SOBs. I took the risk knowing both the up- and down-side potentials. So I started over. No one to blame but myself. Enough raveing. Ciao, Ted