- 1997: Volume 6, No. 1

We start the new year with a look at the options market. A review of the year end 1996 volume statistics shows that almost half of all derivatives contracts traded in the U.S. are now options contracts, so it is fitting that we devote this issue to these versatile instruments.

David Caplan offers some advice on how to determine whether an option is overvalued while James Bittman proposes some advanced strategies for managing index option positions. Delta strategies are the subject of J. Chadwick Vandergrift's article, and Paul Forchione takes a look at the "common sense" principles which all options traders should observe. Adrienne Toghraie comments on the lifestyle options which face all traders. Walter Burke examines the area of extremes in option sentiment. And finally, Mark Taborsky and Michele Ruston discuss long options and how they may help portfolio performance.

Of course Bob Ecob delivers his views on What's Hot, Michael Kahn is in the Chartist Corner, and the Trader's Coach offers advice to those in need. We welcome Chris Myers as our book reviewer.

In our next issue, our editorial focus will be Data, Data, Data. We will discuss the latest developments in data delivery and find out how traders are using that data to improve performance.