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

To: Margaret Mateer who wrote (56826)	11/2/1998 1:40:00 PM
From: AlanH	Read Replies (1) \| Respond to of 58727

Margaret (et al), re:VIX According to Lawrence McMillan (McMillan on Options), low VIX readings tend to precede a "market explosion" -- predominantly to the downside. Conversely, high VIX readings tend to signal a short-term bottom. While we can only chart VIX back to '93 (inception by CBOE), McMillan discusses that prior notable periods can be identified simply by tracking OEX implied volatility. How low is low? I dunno. (My charts suggest that 25ish is low, but not extreme.) Regards, Alan ps. During low VIX readings, a strategy of straddles or backspreads makes sense. (The expectation is for an explosion, although the direction is unknown.)