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Technology Stocks : Ascend Communications (ASND)
ASND 212.50+1.5%Dec 24 12:59 PM EST

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To: WBendus who wrote (8268)8/10/1997 11:18:00 AM
From: vegetarian   of 61433
 
Wayde
Thanks for the above explanation.
However, you are comparing the money made by MMs from TOTAL trading against the money they could make from option writing, that would be a fair comparison if ALL the trading were from options alone.
A fair comparison would be consider money made from trading the volume incurred in options with the money made from writing options (by having them expire worthless).
The MMs would never be in business if they had to make money only from writing options which would be rather risky, whereas the money made from bid-ask spread is relativelyrisk-free.
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