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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: KFE who wrote (802)	7/13/1999 5:19:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 2317

Ken, You are right about the bid/ask spread on some highly volatile NET stocks. The spreads are criminal. Dave

To: KFE who wrote (802)	7/13/1999 9:06:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 2317

I'm not sure what advantage "option ECNs" would give anybody. They were needed for NASDAQ, because the brokers would not represent your order as the new bid or ask. For options, though, if you place an order between the bid and the ask, your order WILL be represented to the market, and the specialist is obligated to let it trade ahead, to boot. You are dealing with illiquid options. An ECN isn't going to change anything for illiquid options. If the spcialist weren't there to make a market, the spreads would be even wider.

To: KFE who wrote (802)	7/13/1999 9:32:00 PM
From: dealmakr	Respond to of 2317

Ken, Just went through a trying time on a 50 lot on WIRE, I bot the piece in one lot, but had to sell out over a couple of days when they only took the first 20 on the offer. I know that its fairly illiquid, but was a copper play hedge. Net stocks are a different animal, its hard to make a market or shoulder the risk without time to hedge when one of those pups can move 5 points in a minute. YHOO and AMZN usually run about a point or less for ATM's. AOL I have found to be very liquid and trade it often, spreads on both ATM puts and calls usually run a 1/4 and you can middle. I have never liked negative bids on intrinsic values on options, by knowing the game better than Joe average option trader, using an exersise exit strategy like you did makes you a tough customer and no one will pick your pocket. Nice play. Closed my IBM puts today for a 50% loss, its just everyones favorite now, but have been having success in the OEX last few days on the put side intraday. Good Trading Dave