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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: gene_the_mm who wrote (518)	8/13/2000 1:00:37 PM
From: ~digs	Read Replies (1) \| Respond to of 1426

Gene, What's your position regarding server side stops? Will everyone be using them someday?

To: gene_the_mm who wrote (518)	8/13/2000 1:59:59 PM
From: dannobee	Respond to of 1426

I might be able to help with some of the options strategies and techniques. Ask away.

To: gene_the_mm who wrote (518)	8/13/2000 4:35:34 PM
From: Mark Z	Read Replies (2) \| Respond to of 1426

Gene - I've a question. Can anyone explain what the benefit is of being able to buy a 'protective put' against shares in a retirement account? If one believes their stock is going to take a hit, why not just sell the common? Commissions are less, you don't have to absorb any premium, your losses due to slippage will probably be lower. So why do brokerages push 'protective puts' as a panacea? Is it just because their profit margins are greater on option trades than equity trades? The only benefit I can see is if you want to synthesize a short position by selling a deep itm call against shares while buying otm puts. But boy do you get clobbered if your stock doesn't tank!

To: gene_the_mm who wrote (518)	8/13/2000 10:55:22 PM
From: KFE	Read Replies (2) \| Respond to of 1426

Gene, Let's talk about some general trading strategies, including possible options hedging (as much as I hate those options guys) Hey, you don't even know me. Things must have changed since my days in the business because the only hedging being done by market makers was the hedging of the option market makers in the underlying security. NASDAQ market makers didn't use options as a hedging tool but then again not too many NASDAQ stocks had options traded on them back then. Are you saying that NASDAQ market makers use options for hedging? Would be glad to discuss any option hedging strategies since that makes up a good percentage of my trading today. I do have a question about taking home positions over night. I worked for the NASD in the 70's and spent some time in most of the market maker firms trading floors and reviewed their books and records. I also worked after that at what was then the largest NASDAQ market maker and if a trader took home a large position over night he would be looking for a new job the next day. Many posters state that market makers are taking large positions in stocks ...any knowledge or comments on that subject. Regards, Ken