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re: OPTION VOLUME



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Just a brief observation....Option Volume at CBOE the last
few days has been huge.  Normally this would bring one to
the conclusion that the expiration rolls were occurring this
week.  It has grown quite common to sell the rolls occur the
week before expiration, especially in the last few years.
That DOES NOT seem to be the case.  These last few days the
volume has included only modest index volume where the rolls
would occur.  Today's volume included almost 60,000 Leaps.
This kind of activity seems to indicate more of a day trader
mentality, especially given that the volume has not been
accompanied by a significant rise in Open Interest.

Put/Call ratios, which I'm a believer really are no longer a
credible indicator, are also fairly ordinary.

Conclusion:  I'm not certain....I expect with nominal stock
prices viewed by some to be so high that there is a greater
use of ITMs as day trading instruments.  Additionally the
mix of retail/institutional business has tipped a bit more
toward the institutional side over the past couple of day,
but again the numbers are not dramatically out of line.