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

To: Electric who wrote (32745)	1/10/1998 3:23:00 PM
From: ViperChick Secret Agent 006.9	Read Replies (1) \| Respond to of 58727

electric there is no doubt that it is swift as it is computer generated However, I do believe it makes a difference in the premiums thing about the overvalue that you see in your model sometimes and you have watched what they do with the premium They are going to jack it up..as Kevin and Patrick have said on a buy/sell program Now if you are watching the tape and you are getting ready to buy a position because it has hit a certain point AND it is because of a computer program...you can bet you are paying more and it will be stripped from you Now lets say it hits the point more gradually and that happens many times...the option is going to be overpriced because that is what they do if you buy in the trend...BUT WILL IT BE AS OVERPRICED AS IN A PROGRAM hitting the point. and this is the more important point....and I dont know if there is any way to tell this....some program trades will be temp (and these you are going to get whacked on becuase they jacked the prem and then strip it even if the market stays the same) or will there be mulitple sell programs thus bringing the market down and who cares if you prem is jacked cause you are going to make money on it.... I guess you have to look at the tick and trin in combination. Patrick, what say you? These are things that I think about contrary to the person who said I never think about anything and just accept what people say. And if you are following a system such as Kevins then you have to look at intra-day. So for your purposes the thinking is a little different than for following intra-day movement Also, I characterize nemers system has intra-day...because he trades during the day when certain parameters are met and his trade may just be for an hour...so I guess you could say it is a trend system because it can be a trend for an hour...but that is not my definition of trend...I would agree it is more along the lines of Don. The same could be said of Kevins system I suppose. It is intraday...but you are trading based on a trend..... the lines of definition can be quite muddied