Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sean sanders who wrote (18821)	6/30/1999 8:24:00 AM
From: donald sew	Read Replies (1) \| Respond to of 99985

Sean, >>> are there particular ones that you find to be more profitable ie the spread is not eating out of your profits and how is it getting in between the bid/ask. For example the DJX has relatively low volume; so do you stay away from the likes of that or just plan on loosing the 1/4 point spread. <<< I have played the following index options: OEX,NDX,DJX,BKX,IIX,DRG,UTY,XOI,OSX,SOX,DDX,RUT,XAL. Of these index options the ones which I have had the most success with are the OEX,NDX,DRG,SOX,IIX,XAL and mainly because of their volitily. The spread and low volume never became a real issue with these indices, but it was with the XOI,RUT,UTY. These indicies are the most expensive but their volitiliy appears to make up for the spread between the bid and ask. I have seen the spread over $6.00 for at the money options on the NDX, but with the volitility of the NDX it is made up quite quickly. The fastest move I ever took part in was with the NDX making over 100% in about 30 minutes, back in 1997. Im not suggesting to play the NDX, just that the key issue for me in playing index options is volitility, not the spread or volume. I even recall days that when I was playing the NDX I was the only one buying the option for a specific strike price, in fact that was the case when I hit that 100%+ in 30 minutes. Actually it may have been shorter than 30 min, since my broker keeps on telling that story to others but says I did it in 15 min. He exaggerates - ggggggggg. seeya