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Strategies & Market Trends : Canadian Options

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To: Kayaker who wrote (1374)4/28/1999 8:36:00 PM
From: Dave.S  Read Replies (1) of 1598
 
Bob:

Like Porter, I'm also a Pro on the Options Floor in Toronto. The Market Makers on the Toronto Floor are all different when it comes to size they are willing to trade. Some will only fill the minimum guaranteed fill (usually 10 options) while others like to do business and will trade hundreds at a time.

This size is also a function of the liquidity of the stock and its volatility. For example getting a fill for more than 10 JDS options is difficult because the spread of the stock and its volatility is large. The MM's cannot hedge very easily. With BCE the stock is quite liquid so the MM's can hedge more easily.

I suspect your problem with BLD is due to its large spread and relatively illiquid market in Toronto.

Dave
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