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To: Kayaker who wrote (71704)10/13/1998 1:34:00 PM
From: Kayaker  Read Replies (1) | Respond to of 176387
 
Interesting Barron's article on the affect of last week's volatility and lack of sellers on option prices. Requires subscription I think. First portion of article below.

interactive.wsj.com

More Buyers Than Sellers
Option prices soar in wild market

By Michael Santoli

Displaying a virtue uncharacteristic of the times, investors spent most of last week resisting an alluring temptation. That is, they refused to indulge the often risky urge to sell options that were trading at monstrously bloated values.

Judging by the inflated prices of index and equity options for much of the week -- particularly Thursday, when some gauges of market fear reached historic heights amid the Dow's 274-point intraday collapse -- traders were staunchly unwilling to sell options, whether naked, semi-clad or demurely bundled....