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To: Bilow who wrote (76561)9/5/1999 1:30:00 AM
From: Glenn D. Rudolph  Respond to of 164687
 
I got the impression that making market in options was mostly about making the spread off of the retail clients, not
about taking big risks. This is consistent with what I know about how market makers work in the stock market, as
well.


Carl,

None of this is know to me as fact but I suspect you are correct. The profit is in the spread so risk is not a major issue. I do not see why a market maker in an option or a basic security would want to take large risks. They do not control the price.

Glenn