Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (10645)	1/9/1998 1:31:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 17305

I suppose I'm mixing apples and oranges a bit. A block trade is not necessarily a program and a program is not necessarily a block. I have been getting some info on blocks and started to mix them up myself. Camp's number are a pure construct using Stoll's formula. Someone else who program trades may have slightly different numbers and it's likely program traders may alter their numbers slightly during the say as the action unfolds. However, looking at a graphical depiction of PREM on a tick chart of perhaps 5 minute bars at a minimum, 15 at a max, should give the trader a feel for where they should be expected. If one could possibly average out all the hypothetical points I imagine your average would be fine....but I don't think it's necessary once you are watching the chart. Premium on what? Premium on options or the PREM? The PREM is a straight $ difference between the cash and the future. It's not a issue of someone jacking it up it's just an indication that the cash market should move higher as a result of traders bidding it up as the futures go up, dragging the PREM higher with it. I'd like to be more clear but I think I just got filled on an SnP contract, gotta go....