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Steve wrote:
> Charles - If anything, the options expiration should have forced prices
> lower as the imbalances are heavily in favor of puts meaning as prices
> fall, all the short puts need to delta hedge by selling futures, or by
> closing options trades.
In response to..........
> > I saw a comment this morning that yesterday's late rally was
> > more expiration related than true buying of the market. Does
> > anyone know how to distinguish this option expiration buying
> > from true buying in real time?
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Then can someone please explain what was going on into the close?
The market overcame two bouts of profit taking and the buy programs
were in force all day. Going into the cash close the futures were at a
substatial premium to cash; even when the futures market closed.
And this was all AFTER Greenspan's speech.
Charles
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