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

To: Electric who wrote (50155)	8/18/1998 1:16:00 PM
From: Nemer	Read Replies (3) \| Respond to of 58727

GolferE: PREM FV Cash Close ------- I think I understand what you're trying to ask I think I understand what Lisa is saying I think I understand what Pat is having a tad bit of difficulty with concerning both your posting I think I'm smarter than I am ....... gggg SO (lisa will pick this to pieces with questions if I'm not clear ) day ends and PREM plummets to below FV ( situation the past few days) day opens and PREM is back to normal and market goes on it's merry way. ( or at least since Electic has posed the question of Prem action) E has been watching this and is seeking a correlation between what he sees and a "potential profit situation" OK ---- here is what I think is happening that Pat sees as normal, and so do I ...... FV is difference between Cash SPX and Futures SP8U and is relatively constant during the day BUT is lower the next day to reflect the reduction of time value. AND the MOC orders for members of the SPX are being executed and cause a movement in the SPX which simply reflects the valuation of it's member equities........ to me this is a reflection of funds closing and opening positions on the member equities of the SPX cause they MUST stay in balance and the MOC orders for buy and sell to handle those orders.... so it's not being massaged incorrectly it's not a harbinger it's a normal function and is self correcting by market open the next day. I'm ready for any corrections .......... from anyone ..... Regards ----- Nemer