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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (28826)	8/29/1999 5:38:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

last year dell options were traded solely on the philadelphia. the spread, even on actively traded options, was .375. this year the american started trading dell and the spread narrowed to about .25. earlier this month, the chicago also listed dell and the spread is now .125 or less. i'm glad i don't have to make my living in the pits I am glad that we don't have to pay the price with lousy spreads. Maybe now these guys can make money since i believe more volume is likely. I just noticed the reduced spreads upon hearing of MSFT options being listed on a second exchange. It was so hard to play options with such large spreads over shorter holding periods. I am curious to know when we get a quote, does it mean that the spread is the same accross different exchanges OR is it just a matter of some active market makers in one exchange narrowing the spread just for a set number of contracts. Just wondering since i don't really know of the inner workings of the options exchanges. I would appreciate if anyone has input on the matter. I usually wonder what happens when a large order hits the pits.