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Strategies & Market Trends : Waiting for the big Kahuna

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To: Haim R. Branisteanu who wrote (9489)	11/10/1997 7:05:00 PM
From: Bilow	Read Replies (1) of 94695

As far as options go, you only have two strikes against you: Spreads -- Try to avoid options under $1. And keep a reaonable time to expiration. Commisions -- Use a discount broker. The time premiums are actually fair. Otherwise the market maker would be unable to offer either side of all the trades. Other than those two effects, options are a fair bet. That is, if you believe the efficient market hypothesis (and the MMs do), one side of the trade is as good as the other. So the only real problem with options is the relatively high spreads and commissions. But they are the only (safe) way of taking advantage of movements during these high volatility times. In any case, I appreciate the wish of luck, I do use a lot of it up. -- Carl

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