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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (32873)	11/1/1998 10:45:00 PM
From: Bull RidaH	Read Replies (3) \| Respond to of 94695

Bobby, >>but the big buying in OEX puts is very bullish.<< How do you know that is buying? Aren't you looking at an activity level index of puts? What most people don't realize is that the big option players don't go long an option typically. They'll sell/write the other side, then take profits as the premium melts. In this instance, I believe smart option players who properly forecasted the market's move higher have been selling puts to capture the excessive premiums, then buying them back as they near zero, and moving up several strike prices and doing it again. That's why all the activity on the puts, and minor on the calls in my opinion. Regards, David