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Strategies & Market Trends : Dawg's Place -- Ignore unavailable to you. Want to Upgrade?

To: jw who wrote (1236)	7/14/1999 6:05:00 PM
From: Sheri Kohn	Respond to of 2751

Thanks jw for taking the time to post those links. I do appreciate it. I read them over but think I'll wait to get into it this weekend, when I can better concentrate. I probably shouldnt bite off another project right now, I am just getting comfortable with L2 trading, but what the heck. 8-> .

To: jw who wrote (1236)	7/16/1999 12:26:00 AM
From: jw	Read Replies (2) \| Respond to of 2751

OT, I have lost Soooo much money buying Calls please let me share my observation I have found. (From CBOE's FAQs) What is the RAES system? How can I tell if a options series is RAES eligible? RAES is a part of CBOE's ORS system that automatically executes customer market and marketable limit orders of 10 contracts or less at the prevailing market quote in the most active series. Marketable limits are defined as orders to buy at a limit price equal to or greater than the market offer, or to sell at a price equal to or less than the market bid. RAES provides retail customers with a guaranteed firm quote and instantaneous turnaround time to the originating branch office while reducing member firms' execution, fill reporting and trade match key punching costs. It makes CBOE's price reporting more timely and efficient while providing an accurate time and sales audit. Option series in equities that closed at a premium of 10 or less the night before will be available on RAES in all expiration months. Option series in the indices that closed at a premium of 7 or less will be listed in the front 2 months. Also if you have a vendor service, series that are RAES eligible are usually highlighted with an A for Automation or somehow designated that it is RAES eligible. (Disparity in Option Strike Prices per Exchanges), Lets Take Amazon (AMZN) -----Strike--------- Last Sale---Net---Bid------Ask---- Vol--Open Int. Oct-140-(YQN-JH-E)--24 1/2----+7---23 1/2---24 1/2---102---1906 Oct-140-(YQN-JH-A)--24 1/4----+2---24 ------25 ------ 25---1906 Oct-140-(YQN-JH-P)--12 7/8----pc---23 ------24 1/2---- 0---1906 Oct-140-(YQN-JH-X)--38 7/8----pc---23 5/8---25 1/8---- 0---1906 I don't know what the NET column means. Apparently the P and X didn't/don't trade today as the numbers seems to be in error. Look at the 1/2 spread between the BID and ASK on the E and A exchanges. With the RAES automatic execution under 10 contracts why not ask your Broker to route the order To Exchange E with a Market order to buy at 24 1/2 for an immediate execution. Ditto on a Sell order have S/he route the order to Exchange A to sell at 24 for an immediate execution for a 1/2 point advantage on both ends. Don't know what exchanges the E, A, P and X are. (Anyone?) I have an e-mail into CBOE about this. Can't find it on their pages. However I know I saw it recently. Regards, /jw ps; I'm watching AMZN options