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

To: jjs_ynot who wrote (47289)	7/3/1998 4:26:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 58727

I'm still digging trying to get all the data on the HFX, you may find this interesting about the Naz 100 wght. totals MSFT Microsoft Corporation 24.46 24.46 INTC Intel Corporation 11.88 36.34 CSCO Cisco Systems, Inc. 8.79 45.13 DELL Dell Computer 5.54 50.67 WCOM WorldCom, Inc. 4.63 55.3 The first five stocks make up over 55% of the Naz 100. <G> Big players who work the NDX options know they can skew the index with these 5 stocks. Like a 1pt move in MSFT will alter the NDX almost to a power of 6 compared to a 1pt move in wcom. ----------- And here are the least 5 WCLX Wisconsin Central Transportation Corporation 0.1 ADTN ADTRAN, Inc. 0.09 DURA Dura Pharmaceuticals, Inc. 0.09 SYBS Sybase, Inc. 0.05 OFISD U.S. Office Products Company 0.05 ---------------- like it would take a 48pt move in sybs to effect the NDX as much as a 1pt move in msft.. indexes often don't tell us crap about the broad market, in fact they can be down right miss leading, if you don't keep an eye on the internals. But index funds and yoyomomogogo funds own a lot more of the top stocks in an index than the bottom part, and they have the expertise to parlay their holdings in a way that lets them manipulate the index , hence the mind set of the herd. Jim PS If you want to play the NDX options , let the first 5 stocks tell you which way she will go..and the trend is your friend.