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


To: jjs_ynot who wrote (1279)3/25/2000 4:41:00 PM
From: OX  Read Replies (2) | Respond to of 2317
 
hi Dave,

I wasn't thinking about GZ's strategy for anything other than to try to understand it for what it is.

...

ok, I was thinking about it for other situations, but not seriously ;-)

(I just saw your other Q to GZ about using his strategy on equities)

Liquidity would be the first problem applying this to equities (QQQ and SPY included). I don't know futures, but my guess is, if one wants to short a futures contract, one doesn't have to worry about not being able to find one to short.

2nd, equities can gap severely... futures trade round the clock (just about... do they trade somewhere on Saturdays?)

and I don't know if the 3rd factor of futures would come into play... and that is leverage. perhaps GZ or someone else would know if this is a significant factor for the strategy (other than the fact that one can't control as many equity shares w/ the same amt of margin). perhaps the leverage to slippage ratio is cheaper for futures than if one were playing w/ GE (stock) slippage. I know SPY and QQQ slippage could get you good :-)

am I missing any other primary features of futures trading?