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To: yard_man who wrote (9666)	10/28/1998 6:05:00 PM
From: Joseph G.	Respond to of 86076

VIS is related to time premium of exactly eight at the money OEX contracts: two each just in the money and just out of the money for each puts and calls for the two front months. But it can be arbitraged with individual similar options on OEX components, and less directly sets levels for the rest of them for front months. Longer perspiration times can and do vary a bit differently, but longer months can't be cheaper than front months ... It sets / reflects the general level of time premiums, so if it's high and you buy, it will require a larger move to make a buck. And, unless there is a big move in your direction, you lose - just in case you did not figure that one already -g-