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

To: donald sew who wrote (34490)	1/30/1998 1:20:00 PM
From: Darth Trader	Respond to of 58727

Wrote a covered call on IBM Feb 105, for 7/8. Be nice to unload.

To: donald sew who wrote (34490)	1/30/1998 1:20:00 PM
From: scotty	Respond to of 58727

Don,looks like reversal day at double top.Nervous Nellies should provide selling pressure before weekend.

To: donald sew who wrote (34490)	1/30/1998 1:28:00 PM
From: Patrick Slevin	Respond to of 58727

Put/Call You know, I never even looked at that. Judging by relative volumes today it looks bearish. Too much call activity by speculators looking for the OEX to get thru resistance at 475. Too early to rely on projections for expiry. What I was refering to in the earlier post was spoo action.By 12:10 EST the high in the futures was 992.50. When it pushed to 992.60 and the PREM spiked it looked like a program was coming in so I sold and was lucky, getting out at 993.00 even. Since then it climbed to 993.30 but the only reason I got out was to take advantage of the spike. I did not watch the options. Actually, if I were so inclined this early in the option cycle, I might pay more attention to the A/D line for an overbought indication but that's me. Anyway it remains to be seen whether the highs are in for the day from my viewpoint, but I don't believe it can close positive regardless of the fact that we are in a seasonally bullish week. In any event, Barron's will have the ratio tomorrow. But I vaguely remember a page at the CBOE that has it. I cannot take the time to look because I just "got the word" that I promised to take my wife out to lunch.

To: donald sew who wrote (34490)	1/30/1998 3:37:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

A/D Oscillator While at lunch I remembered an oscillator you might like to look at. I took a seminar from McMillan (God knows how many) years ago. He told us at some point during the day of an oscillator where he took a running average of the difference between the A and the D trailing back 20 days (I think---will have to dig into the notes). Anyway, he has been very succeessful with it, as I noticed perhaps 3 years ago he added the oscillator to his newsletter and since then he may have struck out with it once. His technique is to take the past period of time, like I say I think it is a trailing 20 days, get the average difference between the A and the D and that is your oscillator point. Perhaps he even mentioned this in his last book, I don't know as I have not read it. Anyway when the oscillator point goes above 180 he views the market as overbought. BUT, he does not sell it (buy puts) until it goes back below 180. The reverse is true on the -180 point. If you are interested I will try to dig up the exact formula.