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Hello
you must look at the ratio was it as hi as 7 to 1
or 10 to 1?
Also
when you examine open interest tonight after the close 6 pm est and then
examine it again at 830am est you see a BIG difference as the exchange
had the final count
SO what count the most is the morning prior to expiration
but even the day before would show 10 to 1 you could bet the house
nice day
Ben
----- Original Message -----
From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, January 24, 2002 11:40 AM
Subject: Re: [RT] Option Sentiment Indicator
> Perhaps that works two out of three times, not so sure about 3 out of 3
> expirations though. I recall some March expirations that had large put
open
> interest and it was accompanied by a large downdraft in stock prices. The
> contrary notion did not work.
>
>
> ----- Original Message -----
> From: "profitok" <profitok@xxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Thursday, January 24, 2002 8:35 AM
> Subject: Re: [RT] Option Sentiment Indicator
>
>
> > Alex
> >
> > I have lost $500000 between 1973 and 1987 in the option game,,
> > and FINALLY figured out how to decide at what spice an index or
stock
> > will close on expiration day
> > it is very simple at that is what you want reported hourly
> > the open interest for example for the qqq Feb. 38 put compare to
the
> > open interest of the 38 call
> > the same for 39 and 40
> > and same for 37 36 and 35
> > (a total of 5 above current price and 5 under current price)
> > what you will see is that when put open interest is 5 times and above
of
> > the call open interest that price CAN be broken intra day but not on
a
> > closing bases,,
> > a 7 put to 1 call ratio would be VERY unlikely to have penetrated
> > intra day
> > and 10 and above I would bet my home on it to not be traded under,,
> > this would be very useful as one would know the MAJOR support and
> > resistance and sell calls when we get close to resistance or buy puts
> > any questions?
> > nice day
> > Ben
> > ----- Original Message -----
> > From: "Jacobson, Alex" <AJacobson@xxxxxxxxxxxxxx>
> > To: <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Thursday, January 24, 2002 10:32 AM
> > Subject: [RT] Option Sentiment Indicator
> >
> >
> > > Hey list .. I'd like your input on a proposed new sentiment indicator.
> > >
> > > Here at the ISE all of our orderflow is electronic .... retail,
> > > institutional, professional ... it's all electronic. What we are
> thinking
> > > about doing is taking periodic snapshots (maybe every 10 seconds) of
> our
> > > completed orderflow. Orders to buy calls or sell puts would be
> considered
> > > bullish and orders to buy puts and sell calls would be considered
> bearish.
> > > The data may or may not be weighted by the size of the orders .. too
> early
> > > to tell. Some folks have suggested weighting the data based on most
> > active
> > > issues as well.
> > >
> > > In effect if in the 10 second window we completed 500 bullish orders
and
> > 400
> > > bearish orders the indicator would be 1.25 .... again scale issues are
> yet
> > > to be worked out. Zero numbers would a problem and we are working out
> > some
> > > thoughts on that. It has never occurred, but it is not impossible.
> > >
> > > In effect this would create a pseudo tiki type indicator based on
option
> > > orders completed ....... tiki has some advantages because of market
cap
> > > issues.
> > >
> > > I'd appreciate hearing your comments.
> > >
> > > Alex Jacobson
> > > Vice President Business Development
> > > I S E
> > > 212 897 8125
> > > 212 425 4926 (FAX)
> > > 877 7209918 (SKYPAGE)
> > > ajacobson@xxxxxxxxxxxxxx
> > >
> > >
> > >
> > > To unsubscribe from this group, send an email to:
> > > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> > >
> > >
> > >
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> > >
> > >
> >
> >
> >
> > To unsubscribe from this group, send an email to:
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> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
>
>
>
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