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Strategies & Market Trends : AIM Questions and Answers

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To: Bernie Goldberg who wrote (176)	7/17/2001 11:16:22 AM
From: OldAIMGuy	Read Replies (1) of 221

Hi Bernie, Well, if one wanted to keep the trade size to 5% of the overall position, yes, 2000 shares would be correct. However, in Newport, for instance, you could use the "What If" feature and see what price would generate a 100 share order even if you owned a much smaller amount. If you only owned 400 shares, a 100 share order would represent 25% of your position! So, the point at which AIM would designate selling 100 shares might be pretty far away from the current price. That's okay in a way, because it would almost guarantee that the Call option would expire unfulfilled. Then you get to keep the shares and the premium! :-) PUT and CALL options are sold as "contracts" and each contract represents 100 shares. This would necessitate using round lots. Best regards, Tom

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