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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: David Lind who wrote (765)	12/23/1999 12:10:00 PM
From: Tom K.	Respond to of 1235

"...Have you used broker stops with any success?..." David, I believe is cutting losses on stocks, but not through broker stops. My opinion is that the market doesn't cater well to completely mechanical approaches. Since it is driven by human behavior, it needs continual assessment before decisions are made...... but given that, if you wish to stay above water with your finances and your tube springs a leak, don't just sit there lamenting or hoping the air will come back. Tom

To: David Lind who wrote (765)	12/23/1999 2:50:00 PM
From: KFE	Read Replies (2) \| Respond to of 1235

David, Have you used broker stops with any success? I almost never use them on options and rarely use them for stocks unless I know that I will not be able to monitor a vulnerable position. When I worked for the NASD and later at a firm which was the largest market maker in the country I often saw instances where market makers would collude and ask another market maker at the best bid to pull his/her bid temporarily so that the stop order could be executed and then bring the bid back up. Stop orders on options have the additional problem of not opening at the same time as the stock and not being able to trade during opening rotation. This message that I posted on the spread thread might be of interest in regards to your question. Message 11546322 If you can find a firm that will take a contingent order that when the underlying hits a certain point your buy to close order will be executed you will be much better off. Regards, Ken