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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: dealmakr who wrote (797)7/13/1999 5:01:00 PM
From: KFE  Read Replies (3) of 2317
 
David,

Market makers in equity options have been tough to deal with. Had to exercise and simultaneously sell the stock of an August(not July) stock option that was only 3 points in the money because the option had a negative 1/4 pt. premium on the bid. Tried a limit order at zero premium twice but they wouldn't bite. Saved $500 on 2K shares by exercising.

Have looked into bearish spread strategies on the nets but the bid/asked spreads are criminal. Several firms are talking about starting alternate option exchanges similar to ECN's. I think that they would do very well.

Regards.

Ken
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