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


To: James C. Mc Gowan who wrote (48934)7/31/1998 2:28:00 PM
From: donald sew  Read Replies (4) | Respond to of 58727
 
Vocex,

You are correct about the premium on index options. I am targeting the 8600 range by the 3rd week of AUG, or at least a test the 8750 support line. Just as a rule of thumb I use the ratio of 16:1 to compare the OEX to the DOW. So a 400 point decline would be about 25 OEX points and 250 DOW points to = 16 OEX pts.

I now prefer slightly out of the money strikeprices so the 550 range should be OK, unless the OEX takes off to the upside.

Seeya