This has got to be one of the most telling set of charts I've seen in a while... Ripped from the story on the market open on CNNfn. Check this out:

Dow Industrial

Nasdaq

S & P

I would not want to be a trader on the floor at the NYSE right now...

Oh great, he clicked the "post" button, that blasted--

-- OddOne (mocklamer_1999@yahoo.com), October 15, 1999

Answers

I told you guys two months ago to buy LEAPS Stock Put Options! Nobody listened! You're all Stock market DGI's!

I'm riding Hewlet Packard down from 109 with 17 Put Option contracts! Hewlet right now is at 82 and still going down! You all missed an opportunity of a lifetime!

STILL NOT TO LATE TO JUMP ON BOARD! I'm making a bundle, are you?

-- freddie (freddie@thefreeloader.com), October 15, 1999.

Hewlet at 81 and going down.......all aboard???????? Start running to catch the down train!!! Wake up guys!!! Dow is still over 10.000. Still time to jump on board! A $2000 investment in Put Options could turn into $50.000 at the bottom of the crash! Don't miss out, act today!

-- freddie (freddie@thefreeloader.com), October 15, 1999.

OK, Freddie....I got $2000, I will bite. Tell me what to do as I haven't a clue.

Taz

-- Taz (Taz@aol.com), October 15, 1999.

We've watched you get rich over the last year, Freddie, so no credibility problems here.

Lay it on us. Then we could all chip in for more metal at the ol' server farm.

-- lisa (lisa@work.god), October 15, 1999.

Hi, we have been listening intently, to every word. We are just not sure of the process or how to do this. Have no idea of what to do, or who to call, or how to even initiate this. Would you feel confortable in providing exact directions for doing this? Thank you.

-- Nancy (HAYSandCO@aol.com), October 15, 1999.

Well, can you tell us quick, freddie? dow down 242, gonna break the 10k, and I think I'm gonna be sick.......

-- lisa (lisa@work.now), October 15, 1999.

I see they have not responded, so until he does, here is some info. I use DJX series option PUTS. These are traded on the CBOE, which has the URL www.cboe.com

Depending on strike price, the symbol will be either DJX FOR 88 AND BELOW, or DJV for 90-116. I need these for my automated phone broker so it knows what batch to retrieve.

Note the strike price is 1/100 the DJIA value.

At the web-site, you can just enter DJX into the field, and then select the middle radio button(else it takes forever), and you will get screens full of data.

On the LEFT half are the CALLS, and all the volume, open interest, etc.

On the RIGHT side is the PUTS, which is the RIGHT , but not the OBLIGATION, to SELL . In this climate, I assume you are looking at BUYING PUTS, which RISE in value as the DJIA drops. You must be pre-cleared by your broker to trade in options first. Then, you must have the cash or sufficient margin, as ALL options are NOT able to be used as collateral--i.e. they have no margin value.

Assuming the DJIA keeps on dropping, the value of your PUTS would RISE, and you could sell at a profit.

As an example, when you know you are in the right place, you will see that the DJX 100(=10000 DJIA) PUTS closed today at 3-7/8, UP 1-1/2. This strike price is right where the DJIA is NOW, and so you can see there is a $4 time/fear premium built-in now.

Others may be trading OEX, SPX, NDX, etc. These refer to the other major indexes.

Unless you already know options, it would take a book to explain everything, so I hope you are not jumping in as a rookie hoping to make a fast buck! As a final note, take it for what it is worth, MONDAY will be THE FIBONACCI 55 DAY from the DJIA all-time high, and crashes have happened before in history on this date IF the preceding few trading days were accompanied by persistent price weakness. Does that not sound like the condition has been met??? An INITIAL downside target has been identified as 9687-9851. But that is a SHORT-term one, and the horrible technical weaknesses seen all over point to no momentum to hold up a slide, so it could get away and ACCELERATE DOWN. JUST MY 2 CENTS WORTH. EVERYONE HAS AN OPINION.

-- profit_of_doom (doom@helltopay.ca), October 15, 1999.