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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (2140)	2/3/2000 9:45:00 AM
From: codawg	Read Replies (2) \| Respond to of 8096

Jill, My experience trading the OEX, and QQQ are that they are thin, so you need to look at a somewhat larger move. I tend to buy index options with longer timeframes than equity options. QQQ is a big improvement over NDX because volume is much larger and the spreads and fills are better. Bottom line is that indexes don't tend to move as quickly as an equity option like QCOM, but they can be a great play for a general move in the market. I use them when we are oversold across the market - like last week - or when I want to hedge my positions (on the short side). I've never traded the RUT. I have no interest in the small caps, but I do know that they are pretty cheap relative to the bigger stuff. What would cause this to become less or more pronounced I have no idea.

To: Jill who wrote (2140)	2/3/2000 10:33:00 AM
From: TRCM	Read Replies (2) \| Respond to of 8096

Jill - Re <<<options on the OEX, QQQ, and RUT>>> First let me tell you that I am new to this thread....edamo gave me the heads up earlier this week...Nothing like a little friendly banter over the options market to pass the time...Looks like both you and poet spend a lot of time here....Anyways, I have traded the QQQ options on a number of occasions as a good way to capitalize on general Naz trends...Nothing worse then calling market direction correctly and being caught in the wrong options...bid/offer spreads are a little wide IMO...same situation applies for OEX...Haven't traded RUT. I see some of you have been dabbling in JDSU and QCOM...I've been in and out of JDSU for awhile now...anything on at the moment?

To: Jill who wrote (2140)	2/3/2000 11:22:00 AM
From: KFE	Read Replies (1) \| Respond to of 8096

Jill, OEX options are very liquid and will give you plenty of action. I trade them all the time. Bid/asked spread is good for options and you can usually trade between the spread even when doing size. An additional advantage is that 60% of all trades are long term capital gains because they are section 1256 contracts. QQQ won't usually move as much because it is 1/20 of the index it tracks. It has moved 10 points or more in day recently due to the extreme volatility of the NASDQ. I haven't treaded it but have used it and the HHH to short the market because they can be shorted on a down tick. Regards, Ken