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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: MonsieurGonzo who wrote (5244)	1/26/1999 8:20:00 PM
From: Chris	Read Replies (1) \| Respond to of 11051

Steve, RE: XLK & NDX I'm glad you asked this. I needed an excuse to look at both of these. At first look they seem much more like siblings than twins. main observations: (See below chart for the details) NDX is much more concentrated in its top 2 & 5 holdings 36.54 & 60.87% vs XLK's 22.11 & 40.96%. While the top 10 holdings for NDX vs XLK are much closer in % (71.4 vs 60.61). The company mix with each is quite different in weight & names. (Note: MSFT/INTC are 1 &2 in both. Vastly different weights) > What do you estimate, Chris: 1 XLK point = ~40 NDX.X points ? > or would some percent NDX.X move be the better XLK rule ? I really have not followed NDX closely at all. Right now the XLK -> NDX point difference is about 1 to ~56. I would guess that these two have a rough correlation but not close to 1.0 – 1.0. I like the XLK balance better than the NDX, but being concentrated in MSFT & INTC has a nice upward direction to it. <g> >and... how stable is the delta on the XLK options ? No clue really. I've been following the ZJLAC (1/01 29 call) and its price has increased faster than the XLK's. when you first Posted about the sector spdr's the XLKs were near 33 ½ and the ZJLAC's were near 10 ½ now XLK is about 36 ½ and ZJLAC is at 14 ¾. This would have been a sweet return for a couple week investment. <g> NDX has no LEAPS? I didn't see any LEAPS for NDX. I still don't know much about index options and this was one reason that I liked the XLKs. Looking at the ZJLAC chart now I really like the power of a LEAP on an index in motion. I'm not certain if this was really that helpful for you, but it gives me a better appreciation for XLKs. A very conservative friend of mind jumped on the XLK bandwagon a day or two after I told him about them. He is very happy with his ~10% gain so far. I looked but did not yet LEAP, Christopher Top 10 holdings NASDAQ-100 %weight Total% Amex SPDR (XLK) %weight Total% ---------------------------------------------------------------------------------------------------------- Microsoft Corporation MSFT 23.73 Microsoft Corp. (MSFT) 14.07% Intel Corporation INTC 12.81 36.54 Intel Corp. (INTC) 8.04% 22.11% Cisco Systems, Inc. CSCO 9.6 International Business Machines (IBM) 7.01% MCI WORLDCOM, Inc. WCOM 8.37 Cisco Systems Inc. (CSCO) 5.96% Dell Computer Corp DELL 6.36 60.87 Lucent Technologies Inc.(LU) 5.88% 40.96% Oracle Corporation ORCL 2.91 AT and T Corp. (T) 5.53% Sun Microsystems, Inc. SUNW 2.26 MCI WorldCom Inc. (WCOM) 4.43% Tele-Comm, Inc. TCOMA 1.85 Dell Computer Corp. (DELL) 3.80% Yahoo! Inc. YHOO 1.81 America Online Inc. (AOL) 2.98% Amgen Inc. AMGN 1.7 71.4 Compaq Computer Corp. (CPQ) 2.91% 60.61%