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

To: bobkansas who wrote (1247)	6/2/2000 8:42:00 PM
From: Jill	Respond to of 10876

That's a good ? you asked RM, and I've been looking at that issue myself lately. I'll be curious what t2 says when he answers my questoin about high volume buying on cheap OTM options--or any, actually--where you make the market. If there's sufficient open interest it will be much easier to trade in and out of the option. So that's something to take into account. And yes you won't get scalped as much on the bid/ask. But I'd love to hear others' thots & experiences. See ya'll over the weekend. :-)

To: bobkansas who wrote (1247)	6/2/2000 8:59:00 PM
From: RocketMan	Respond to of 10876

When I buy cheap options with low volume, I find that I can usually get the ask price or close to it, even with a large order. However, I only buy those as a position play, or a mo play for a big gain. I never buy them with the intent of flipping them, because I know I would get raped on the b/a. If they are cheap enough, though, the downside is limited, so I don't care if I lose it all. But the upside is considerable. I have had 10+ baggers this way. This, of course, is not a mainline options strategy, and is not to be practiced as a routine. I only do it for fun, or to release my frustrations, when I am out of better alternatives <g>.