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

To: donald sew who wrote (11114)	4/15/1999 12:31:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

Don, i can't tell you right now how the puts are spread out calender-wise as i only get a list showing in which stocks put OI is greater than call OI as well as a report on unusual options activity. i plan to track selected issues more closely in the future,so i will have more detailed statistics for your perusal soon. As to the meaning of the higher put OI, it usually means there is limited downside. when the stocks run up sharply the best way to get a read on whether they are ready to top out is to closely monitor if put OI starts to contract and if speculators are changing their stance by abandoning the puts and starting to buy calls. when that happens some sort of short term top can be expected to be near. if sentiment gets bearish quickly once the stocks turn down, it is probably just a correction in a continuing uptrend. conversely, if options traders hang on to their bullish stance there is a high probability that the sell-off will be big. regards, hb