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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (1598)	8/12/1999 10:53:00 AM
From: ----------	Respond to of 2241

Not all firms do automatically route to the lowest. I use Quick & Reilly. They allow you to specify where you want the order to go. If you don't, it goes to the American Exchange, (assuming the option is traded there.). I inquired about this practice & got a very honest answer. They own a seat on the American Option Exchange, so they direct their business to their own people. In all fairness to them, they do regularly honor limit orders IF my limit price is available on ANY other exchange. If I'm doing a market order, I'll look at the various exchanges & specify if there is a difference. Personally, I have no problem with the way they do it, because they were up front about it & explained their house procedures to me. I'm not touting or recommending Quick & Reilly or any other firm. But I would agree it is imperative that the customer is aware of all of the "rules of the game" when they start trading options. Best Regards, Doug

To: Jon Tara who wrote (1598)	8/12/1999 8:22:00 PM
From: bogumil	Read Replies (1) \| Respond to of 2241

Jon, is www.deltatrader.com reliable? Is their site fast enough during market hours and how fast are option executions?

To: Jon Tara who wrote (1598)	8/24/1999 6:59:00 PM
From: limit	Read Replies (1) \| Respond to of 2241

Can someone explain what "implied volatility" means. TIA CHICAGO, Aug 24 (Reuters) - Implied volatility crept even higher Tuesday in options on Liposome Co. (Nasdaq:LIPO - news), although volume had tapered off, as the market eyed a mid-September federal panel review of a Liposome cancer treatment drug. Implied vols for September 22.5s firmed to 138 percent, up from around 130 percent late last week and well above the stock's one-month historical volatility of about 76 percent. On August 19, the New Jersey-based biopharmaceutical company said the U.S. Food and Drug Administration scheduled its Evacet for oncologic drug advisory committee review on September 16, seeking approval to use Evacet combined with cyclophosphamide for metastatic breast cancer. ``It's (vol rise) going to happen, going into the drug announcement,' said Ben Nitka, designated primary market maker with Option Resource Group at the Chicago Board Options Exchange. ``It's (FDA panel review) a one-time event...so I don't see it (vol rise) as anything unusual.' On August 11, Liposome entered a clinical trial pact with Rhone-Poulenc Rorer Pharmaceuticals to test the safety of Evacet combined with Taxotere for breast cancer treatment. Daily option volume has edged off, however, after peaking last week at around 1,900 contracts. At 1427 CDT/1927 GMT Tuesday, roughly 550 calls and 240 puts had changed hands. ``Volume has dried up a touch,' Nitka said, ``Put buyers have driven prices up' and traders might be waiting to see if vols come off again before the FDA committee review. Shares of Liposome were down 2-15/32 at 22-1/2 on Nasdaq mnarket volume of 900,400.