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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: JimsJeeps who wrote (11168)7/6/1999 9:49:00 PM
From: Jon Tara  Read Replies (1) of 14162
 
Actually, here's a better explanation than mine, that explains precisely why what I observed is so:

Message 10395047

My "feeling" was that it's a lot more safe to place market orders on options than on NASDAQ stocks, and this explains why. The specialist is obligated to honor the bid/ask when it is theirs. Place a limit, though, and you become the market. Seems reasonable. Since I deal mainly with options for which there is little ready market (in-the-money), I'm more than happy to give the specialist his due for providing a market for me.

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