The S&P is looking very toppy

waggie945 · Jan 24, 2004

Yes, there are 5 trading days to a week, but that still doesn't answer my question . . .

Just because there are 5 days in a week doesn't necessarily mean that the Feb. 1200 Calls on the S&P Futures traded at the price that you sold them on every one of those days.

It's really is a pretty simple question:

What day did you sell your 200 lot of Feb. 1200 Calls?

James Stock · Jan 24, 2004

Quote from Nolan-Vinny-Sam:

Yes, there are 5 trading days to a week, but that still doesn't answer my question . . .

Just because there are 5 days in a week doesn't necessarily mean that the Feb. 1200 Calls on the S&P Futures traded at the price that you sold them on every one of those days.

It's really is a pretty simple question:

What day did you sell your 200 lot of Feb. 1200 Calls?

What are you trying to say?

James Stock · Jan 25, 2004

I'm beginning to feel very confident that the top is forming, and that 1150 will prove to be massive resistance.

stockteacher · Jan 25, 2004

When the VIX.X traded below the 20 level, it was a signal that investors are overly bullish and a reversal is due. I think the 20 level isn't accurate anymore, and this level has moved to 15.

QdzResurrection · Jan 25, 2004

Quote from stockteacher:

When the VIX.X traded below the 20 level, it was a signal that investors are overly bullish and a reversal is due. I think the 20 level isn't accurate anymore, and this level has moved to 15.

I think it's 10 or maybe 5 till all bears become bulls. But even then, if the situation goes well, VIX will stay in range for a year or two. The implication is that all PUT option buyer vanish as for no need and sellers for no premium. The VIX theory is no longer applicable. VIX index and PUT options all go to OTCBB.

waggie945 · Jan 25, 2004

What DAY last week did you sell the 200 lot of Feb. 1200 Calls on the S&P Futures?

waggie945 · Jan 25, 2004

What DAY[ last week did you sell the 200 lot of Feb. 1200 Calls on the S&P Futures?

James Stock · Jan 25, 2004

Quote from QdzResurrection:

I think it's 10 or maybe 5 till all bears become bulls. But even then, if the situation goes well, VIX will stay in range for a year or two. The implication is that all PUT option buyer vanish as for no need and sellers for no premium. The VIX theory is no longer applicable. VIX index and PUT options all go to OTCBB.

Out of the money puts will always have a higher premium than out of the money calls because for most investors, put buying is the best way to protect in case of a sharp correction or crash.

I do agree that 15 is a better representation of average value on the vix. People forgot that in the early 90's, 12-15 was a normal range.

stockteacher · Jan 25, 2004

Yes I agree, we must keep a close eye on this range, it is constantly changing.

James Stock · Jan 25, 2004

Quote from stockteacher:

Yes I agree, we must keep a close eye on this range, it is constantly changing.

Why must we keep a close eye on the range? What does a change tell us?