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

To: Junkyardawg who wrote (49791)	8/22/2000 7:56:13 PM
From: Doppler	Read Replies (1) \| Respond to of 63513

Hey Dawgy- I agree with your statement about them being crooks. I have been in and out of RMBS options 2 times in the last week. Each time there was a bigger spread than I would have expected, but not $3. Usually a buck and a half or so where I buy at the money. I have found however that you can usually come in halfway between the bid and ask and usually get filled. Not just with RMBS either. Just today I bought SXM UT's (S+P puts). Bid 19 ask 21. I bid 20 and got it. If the price changes and the option goes to 19 1/2 to 21 1/2, I change to 20 1/2 etc. I rarely, if ever, pay the ask. It is only a little bit, but it sure helps even the odds. Here is an interesting stat for you. Today's put/call ratio on the ATM S+P's was about 2 to 1. The outstanding ratio for the life of the contract is about 2 to 1. The most interesting thing though, is the premium for calls is 30 bucks. For puts it's 19. That is how the VIX gets so low. Lots of complacency for the bulls. Bottom line- raise some cash.