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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (10877)	4/13/1999 7:28:00 PM
From: pater tenebrarum	Read Replies (4) \| Respond to of 99985

PUT/CALL ratios for today CBOE total: 0,55 individual equities: 0,38 OEX: 1,42 VIX: 24,42 the ratio on individual issues has improved somewhat and although it is still rather bearish, there was a notable increase in put volume by 20,322 contracts to a total of 237,510 contracts. call volume decreased by 2,415 contracts to 619,284 contracts, still showing quite a bit of speculative activity. the OEX ratio remains firmly bullish, if a bit less so than recently. OEX call volume increased by 398 to 64,316 contracts and put volume decreased by 4,586 to 91,414 contracts. front month premiums on calls have started to collapse, while at- and near-the-money puts saw their premiums increase markedly,considering that expiration is only 3 days away and the OEX was down by a mere 4 points. the reason for this was great demand for said puts, which saw very strong volume today. there seems to be some speculation on a sharp break before expiration, as there was noticable volume at the 650 - 680 put strikes, where the largest open interest continues to reside(oex=681.45). since the volume in these strikes was not related to close-outs i conclude that the expected break is unlikely to happen.the increase in the VIX today can be ascribed to the increase in put premiums, as both april and may options used for it's calculation (one each of the just in-the-money and just out-of-the-money calls and puts) show hefty shrinkage in call premiums and an even heftier increase in put premiums. this points to speculation on a correction as well as hedging activity, a good sign for the bulls. hb