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

To: Electric who wrote (43429)	5/18/1998 11:41:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

Apples and oranges. Those are options based on the cash S&P. The symbol for the S&P Futures is SP8M. In a similar vein as stocks, if you own each stock in the SPX weighted proportionally to it's worth in the SPX then each 1 point move in the SPX gives/takes a net point away from your position. By buying a SP8M contract you effectively control a basket of stock representing such a position, with the contract expiring in the June, 1998. Owning options on the SPX "cash" or SP8M subjects you to fluctuations in premium. So, in effect, what Tom and I are doing is messing with baskets of stock deliverable at some point in the future. No matter where the market closes at that point.