Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: epicure who wrote (51822)	9/8/1998 3:16:00 PM
From: ViperChick Secret Agent 006.9	Respond to of 58727

I am a little nervous for AMZN to the downside ....will probably wait +MythMan (26905 ) From: +tippet Tuesday, Sep 8 1998 3:02PM ET Reply # of 26908 U.S. OPTIONS/Vols dip but remain historically high CHICAGO, Sept 8 (Reuters) - Implied volatility on S&P 100 options dipped on Tuesday as the index staged a powerful recovery, but vols remained at historically high levels giving bulls reason to pause, traders said. By 1113 CDT/1613 GMT, the Market Volatility Index , which measures implied volatility of several strikes on OEX options, was down 3.07 points, or almost 7 percent, to 41.54. The OEX was up 10.92 points, or about 2.3 percent, to 488.36. ''The vols slope is inverted and you can say two things about that for sure. One is that market makers are expecting extreme volatility in the market in the near term, and the other is that it is unlikely that we'll be able to sustain a rally,'' said one index options trader. Larry McMillan, president of volume and options tracking group McMillan Analysis, said he was waiting for more signs to confirm that today's rally would continue. ''The S&P futures option put-call ratio has flopped over to a buy signal, but none of our other indicators have yet,'' he said. He noted that recent upward gaps at the open have been sold hard, adding to the bearish sentiment. ''One of these days, that gap opening is going to hold...but right now this market is just too volatile to trade without our intermediate-term signals being in accord,'' McMillan added. Jerry Hegarty, OEX analyst with Thomson Financial Services and editor of Hegarty's Options Navigator, noted that every rally since July 17 has been short-lived, but today's rally could carry over into Wednesday because of extremely high put volumes.