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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: KFE who wrote (11151)	7/4/1999 12:07:00 AM
From: tuck	Read Replies (1) \| Respond to of 14162

Nate, Mark, and Ken, I appreciate your help on this. I have a somewhat better understanding of this now. As far as exchanges are concerned, in my case, it appears to be moot. If I'm reading the CBOE quotes screen correctly, EDFY's options trade only on the AMEX. I still can't figure out why the spread wasn't executed. Even though it was a "not held" order, I was giving the market makers all they wanted on their spread. Thus I figured the best efforts of the floor broker would be good enough; that's why I changed the net credit from 1 3/4 to 1 5/8. I might try it as seperate orders, but I thought I saw the bid/ask on the two options in question being adjusted during the day after my order was first placed (the potential net credit varied from 1 1/2 to 1 5/8, but the latter prevailed 95% of the time). Of course, since the stock was moving around, I could have been seeing lags, not a conspiracy. With luck, two market orders entered one after the other would be fast enough not to burn me, as limit orders trying to shave an 1/8 almost certainly would. If I was really lucky, the stock might move in my favor. Yeah, right. I'll wait on that strategy until I'm truly desperate. Thanks again for y'all's help. Hope you're having a good weekend. Cheers, Tuck

To: KFE who wrote (11151)	7/4/1999 5:10:00 PM
From: Eye	Read Replies (1) \| Respond to of 14162

Need help understanding selling low volume options What's the best way to sell an option when there is little or no option trading volume? If a market order is placed, is it likely I will at least get the current Bid price? Or would it be better to place a limit order equal to the bid? How likely/unlikely would an order go through? I want to write some covered calls against AMCC, CNXT, and VTSS ... the contracts I'm interested in have moderate open interest and little or no daily trading volume ... I look at the latest quotes from cboe and see attractive bid prices, but no volume. Does the cboe keep their bid/ask prices "current"? I'm nervous about placing a market order when there is no volume ... afraid I'll be eaten alive by market-maker ... Thanks for any help p.s. I also posted this question in the newbie options board; I apologize if this isn't appropriate question for THIS board.