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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (49754)	8/22/2000 3:58:32 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 63513

I would never buy OTM options, so I can't help you there.

To: Rich1 who wrote (49754)	8/22/2000 6:34:28 PM
From: Junkyardawg	Read Replies (2) \| Respond to of 63513

Rich:re:options I will say this and even though down through the past couple of years I have made more money than I have lost playing rmbs options.......the guy that handles the rmbs options is one of the most crooked option specialist you will ever see. Most of the time he has a three dollar spread on the bid and ask and you can jsut forget about the ask price unless you want to buy. Fact is the second you buy RMBS options you are already $1 to $3 in the whole. In other words RMBS has to go up at least $5 just to break even if you count the comm. Bottom line is that if you are going to buy RMBS options you better be pretty sure that it is going up at least 5 points or you are toast. dawg

To: Rich1 who wrote (49754)	8/22/2000 8:09:50 PM
From: Oral Roberts	Read Replies (1) \| Respond to of 63513

Rich, In my short term account all I do now is options. The spread on RMBS makes it one of the stocks I generally avoid. If I am compelled to play it I will look deep enough in the money to avoid alot of that hit. RMBS is a great stock to be a seller on, but not a very good stock to be a buyer on for my tastes. I think you want to almost day trade RMBS options because the spread and premium is measured in minutes rather then weeks. On the plus side, you protected yourself and your long term holding is looking at the fence again:) If I didn't think so much of Big J I would have been short when he was looking long (thank you!). Option's are a much thinner market and much less controllled then just about any stock and we all need to keep that in mind when we look that way IMO. Jeff Roberts