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Strategies & Market Trends : Expirationless Options (XPOs)- The Next Big Thing
XPO 141.09+0.7%Dec 24 12:59 PM EST

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To: VLD3 who wrote (35)7/9/2005 1:47:26 PM
From: Tech Master  Read Replies (1) of 60
 
One of the biggest potential users for XPOs will be old stock traders. Decimalization killed the spreads. The ability to trade stocks successfully has become extremely difficult and we've seen the mass exodus of liquidity providers in the equity markets.

XPOs will create the opportunity to recapture the lost equity trading spreads and then some. I predict that once old traders figure that out, it will blow XPO trading activity wide open. If nothing more, they will replicate old trading strategies that worked pre-decimalization and bring that approach to XPO trading. Hedging against the underlying stock will also boost liquidity in the equity market- thereby creating a win-win situation for everybody.

Thoughts?
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