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On Wed, 29 Oct 1997 22:34:46 -0600 trader-opt@xxxxxxxx (David Trader)
writes:
>Can you use the AMOSS with individual stocks by using the vix and the
>indivdual stock price? Will this work at all?
David, The amoss will not work this way for individual stocks. In as much
as an individual stock will trend with the overall mkt you can use the
amoss as a tool to determine mkt conditions. You can add this info to
your decision making process in timing your trades. What you might try
doing is to take the z-score formula from the amoss spread sheet and just
use this with individual stock data. The combination of this and the
amoss should give you good results. I would further suggest that you use
the z-score on the industry group that the stocks you are trading are a
part of. I think I am close to coming up with an indicator for individual
stock data that will work in a similar fashion to the amoss. Stay tuned
to this channel.
Good Luck
Ron McEwan
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