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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Ben Antanaitis who wrote (6683)	1/12/1998 10:43:00 AM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

With all due respect, I guess I'm not convinced that it's "dead on." It seems to me there's no real way to place the cutoff (as you have done at 20). e.g., why not drop everything at 22.5 and below? 25? 27.5? All of those strikes seem to be remnants of rather old price action. Any choice of a cutoff will be arbitrary. Although I haven't completely thought this through, it seems to me that what the analysis seeks to do is to get a handle on investor psychology via action in the options market. But I think the continued open interest at low strike prices stems from investors who are fundamentally different than those involved at strike prices near today's price. Their "pain" is more akin to mine, as someone long SUNW, than it is to someone trying to leverage price action via options. I note that the February options seem (at least to my cursory examination) to paint a different picture. JMHO of course.