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

To: Benjamin Ng who wrote (1550)	9/19/2000 7:12:32 AM
From: Porter Davis	Read Replies (2) \| Respond to of 1598

>> One term I'm not familiar with is what an "opening" or "closing" order is. Anybody? Also, do _all_ contracts traded on the ME correspond to a delivery of 100 shares? An opening transaction is one in which you create a position while a closing transaction "liquidates" or closes out that position. When a new option series is listed, no contracts "exist". They are created out of whole cloth by an opening buyer and an opening seller. For every open short position there is a corresponding open long position. That may seem obvious, but it prevents the embarrassment sometimes found in equities where the short position exceeds the stock's float. All 'regular' equity options listed on the ME are for delivery of 100 shares of the underlying per contract. There are several issues currently trading which have different delivery specs (such as BCQ) due to spin-offs, distributions and the like. I'm sure glad this past summer is over and we're seeing the seasonal increase in volume. Various factors combined to make this the most expensive three months in my career. At least I'm still in business. Happy trading. Porter Specialist in ABX, BCE, BCQ, BLD, N.

To: Benjamin Ng who wrote (1550)	9/19/2000 4:33:57 PM
From: checkmate	Respond to of 1598

I am surprised that a trader who plays the heating oil mkt can be confused by simple option trading. I would love to learn about comm trading. As to options I trade on with TD on line I trade Jdu and NT options only. I own the stock and write out of the money covered calls. In the last 2 yrs I have been called only a few times...I have always kept the premium at the end of the contract of bought it back and cloes the transaction. I now own JDU and sold OCT calls 180 calls at 12.00 I feel very confidant that in the next month or so they will be above 12 and will be under 12. When time and price come together to make them about 2-3$ I will buy back and close the position. In the last 2 years my cost basis for my NT and JDU shares are approx $0.0 thanks to the calls. Cheers CM