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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Jay Scott who wrote (7628)	9/23/1998 10:31:00 AM
From: james ball	Read Replies (1) \| Respond to of 34811

Scott, The CBOE OEX Volatility indexs reflects a market consensus estimate of future volatility, bsed oin the "at the money" quotes of OEX index options. Computed using the nearby put & call options (with at least 8 days left until expiration) and second near by options. The concept is that as the market/stock declines volatility increases and visa versa. One would look at past highs and lows in volatility to predict tops and bottoms. Having developed and managed an options strategy department for a major regional firm for 10 years, I have found no real use in this compared to the utility we get with the bullish percent indexes. The more you put into the mix the more confused you will be. Tom D.