To: jjs_ynot who wrote (1618 ) 8/28/2000 9:53:06 AM From: KFE Read Replies (1) | Respond to Dave,How big an effect is this? 10 percent or 100 percent? Although not quite in his 50s, Riley has suffered two heart attacks, one of which also involved a mild stroke, and has been carried off the trading floor on a stretcher on two occasions. Put a stethoscope to his chest and you’ll hear the steady tick of a pacemaker. Long Gamma: Riley explains that other things being equal, he likes trading from a long gamma, short vega position when possible. LEAPS: Bad Fills: A few hours later, this trade will come back to haunt Riley when a floor official comes by to query his fill. At the time Riley bought these options at $6, the Pacific Coast Exchange was apparently showing a 6 1/8 bid and the upstairs customer wants a fill no worse than 6 1/8th. Riley will protest a bit, but eventually agrees to adjust the fill to the higher level. In his haste, he may have missed checking the bid-offered prices of the other exchanges. Competition: To make matters more difficult, the broker announces that his customer is also checking the market for these options “away” at the Chicago Board Options Exchange.
