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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (1102)	1/8/2000 9:07:00 AM
From: jjs_ynot	Read Replies (1) \| Respond to of 2317

Jon, Did you leg into the OEX spreads or do it in one transaction? Dave

To: Jon Tara who wrote (1102)	1/8/2000 4:03:00 PM
From: OX	Respond to of 2317

re: Panic Mode I noticed this week where QQQ options (esp. Puts) would jump 1 and 2 whole points; b/a spreads would widen as much as 2 pts... during 'panic time'. fwiw, I will set up my spreads ahead of time, try to model what the net db/cr will do in varying situations, then monitor the possible net cr/db for real for a little longer... then put in my order trying to capture the best of the underlying and options b/a spread. or... with PT's trading app, it's possible to leg into a spread as the mkt rallies to capture a better net spread than what you can do w/ a spread order. It's a lot of quote watching, but on some underlying can be quite profitable. There are times when the underlying will zoom 1 full point, but the option I'm looking at will not move. Time to pounce right before the quote gets updated :-) I'm not recommending legging into a spread, but just saying w/ some patience it's doable w/ PT, where one could not w/ a browser-based broker. --- and there's no way to catch the underlying w/ shares to make this payoff w/ as fast as some of these stocks rise (and fall)... but w/ options it's possible to "skim the cream" at times.

To: Jon Tara who wrote (1102)	1/8/2000 8:07:00 PM
From: KFE	Respond to of 2317

Jon, I legged-into the QQQ credit spread not because I wanted to take advantage of market direction, but because it was the only way I could place the trade online. Getting through to my broker (Preferred) on the phone is getting increasingly difficult - usually a 10-20 minute wait. Just remember that when you leg into a spread your pants are down and you are fully exposed. I had heard good things about PT and options trading but if they don't let you enter spreads online and have phone delay then I don't think that I will be using them. Even Schwab allows spreads to be entered online. My rule on this used to be to try to split the bid-ask spread, and then give them an extra 1/8. (And, of course, enter it as a spread Not a bad rule and it should still work. Problem is, my broker never has QQQ shares to short, so I'm damned sure they won't have HHH's. Do you call your broker before the opening to reserve shares. This usually makes it much easier. Regards, Ken