Re: GEN - Barrons VIX Article

[BobRABCDEF <BobRABCDEF@xxxxxxx>]

The Barron's article said that sector index options and the NDX options might
be less expensive than snp options.  The liquidity and volatility factors
alone kill that notion.
 That chart went with the previous post.

BobR


In a message dated 98-05-24 16:22:00 EDT, you write:

<< Subj:	 Re: GEN - Barrons VIX Article
 Date:	98-05-24 16:22:00 EDT
 From:	stansan@xxxxxxx (Stan Rubenstein)
 Reply-to:	stansan@xxxxxxx
 To:	BobRABCDEF@xxxxxxx
 CC:	realtraders@xxxxxxxxxxxxxx
 
 Bob,
 Your attached chart shows the NDX (NASDAQ 100) statistical and implied 
 volatilities. How does this bear on the use of VIX (OEX iv) as discussed in
 the Barron's article.
 
 Another point for others on this list:
 If any stock's volatility shrinks it usually shows up in a chart pattern
 that 
 reveals "basing" or trading in a narrowing range. According to chart
 pattern readers such "congestion" or basing usually is followed by a 
 breakout up or down.
 
 I draw the conclusion that the recent decliine in VIX is an indication
 that the market is poised for a move - but the question is Up or Down?
 
 Any comments?
 STAN
  >>