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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (12809)	5/26/2000 4:07:00 PM
From: OX	Read Replies (1) \| Respond to of 14162

they're called 'spread orders'... for a net debit/credit. you can split the bid/ask spread on both this way. but there's no guarantee it'll execute of course.

To: NateC who wrote (12809)	5/27/2000 9:22:00 AM
From: Herm	Respond to of 14162

Hello Nate, Ditto to OX's answer. The type of order you are referring to is called a spread. It could be a credit or debit as the net result of the transaction depending on which way you are going. Be it, bullish or bearish or anything in between, there is an exact spread combination to meet the objective. For the new readers, I will answer a little longer to provide some more details about what you are asking. It just happens that I'm working on my WINs© Leap Spreads Learning Modules this weekend and that is one of the topics about the ordering process and the real world realities. I now use mrstock.com exclusively for all of my spreads and options trades. Their order taking screens are easy to fill out for your order. Here is a link to that demo off their web site. It will be easier for folks to see what what the spread situation looks like. secure.mrstock.com He may be right about you getting a tad more going the net credit spread route via your broker versus you trying to go and do each leg of your spread by yourself in the open market. There would be a profit motive doing it as a spread as you will see below. When you have a spread, what you wish to buy (to open)is given to you at the bid price and what want you wish to sell (write to open) is sold at the ask price. That way, both sides of the deal can make a profit because the difference is their cut in commissions. Using your example means that your 6 1/8 ask for you minus 15/16 sell for them = 5 3/16 limit. Like OX said, you may not get it filled at your price if you try to do it on your own. If there is no big swift in price or open interest, you may wait a long time for your order to get filled. If one day passes by you are again glued to the screen trying to may a 1/4 point or less at best. I hope that helps..... ----------------------------------------------------------- The opinions expressed are for educational purposes and not an offer to buy or sell securities. Investing in options is a risky investment and investors should know about the risk and characteristics of options before they invest. The writer may invest or hold the positions discussed and will acknowledge and indicate so when appropriate. The writer is the owner of leapspreadswins.com.