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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (5168)	10/17/1999 7:01:00 PM
From: Sir Francis Drake	Read Replies (1) \| Respond to of 10027

Gary, two things: first, while adding options and diversifying your revenue stream are tremendous plusses, I'd like to say something I have not seen pointed out here in all the joyous celebration of the options business for NITE. The spreads, and associated profits for options brokers are much, much greater than for stocks. This would lead one to believe that a tremendously profitable business is coming on line for NITE. Unfortunately, those profit margins were due to cartel-like control over the options industry, that is in the process of breaking down as we speak. The spreads will shrink tremendously. The same thing that has happened to the stock trading industry, is happening to the options trading industry - they are simply 10-15 years behind. Those fat margins will be a thing of the past very soon. Meanwhile, volume is not nearly that of stocks. Also, I wonder if NITE will be able to dominate that industry the same way it was able to do with market making in stocks - it is a different game, and KP and gang cut their teeth on stocks - we'll see. In the end, no doubt, it will be accretive to NITE's revenues, but I wonder if many who see tremendous riches in this new adventure, appreciate all the caveats. Second: as to how quickly "all will be forgotten" - we'll see. I have a hunch, it won't be quick at all. In fact, I think it will be an arduous grinding up point by point - the 5 point spurts will occur, but they'll be splendid opportunities for shorts, because the rise will be met with waves of selling from those who just want to get out, and who take any big rise as an opportunity to bail. So, any sustained rise will be slow and small step by step - the big jumps will not be sustainable. In any case, that's how I'll play it. I guess the future will show. Good luck! Morgan

To: Gary Korn who wrote (5168)	10/17/1999 8:03:00 PM
From: oilbabe	Respond to of 10027

Gary: I tend to believe you are right. If you go back to the beginning of last October, only one year ago, and read the LRCX thread, you will see much the same sentiment expressed. At that time it was trading below $10.00. When, and if, the profits look like they are back, for whatever reason, the market will be there for this stock, and those who leave will be easily replaced with new investors. We have all seen this time and time again with volatile stocks, and I would venture to say that we will see it here too.