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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (725)	2/12/2003 5:57:24 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 1064

I was hoping someone who really knows would answer this. I think owning a seat makes you an options specialist in some of the options traded on CBOE. I don't know anything about the internal structure of the exchange. You might try directing your question to KFE, who has posted here at times. I expect he can answer more intelligently than I can.

To: J. P. who wrote (725)	2/19/2003 11:15:33 AM
From: KFE	Respond to of 1064

J.P. Why would one buy a seat? Many reasons why an individual would buy a seat. One might buy it for appreciation and lease it, to trade for himself as an independent market maker, or use it to be an independent floor broker executing other peoples orders. Membership procedures include taking a course, passing a test and establishing a clearing firm relationship. If you are really interested contact the exchange for a membership package. The independent option market maker is a dying breed and it is not something that I would recommend to anyone right now. Remember that a market maker has to make a two sided market. Capital requirements and margin rules are different for market makers than they are for retail traders. Regards, Ken