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

To: Dan Duchardt who wrote (816)	3/14/2003 8:47:26 AM
From: jt101	Respond to of 1064

Dan, You may be right. But on Globex there is/was/will_be always an ask, may be with a spread of $1-2 at the most, during regular hours, may be except on the last day. Infact, I was closely watching TWS, and the Globex ask was always between 14 and 15. It makes perfect sense because the bid/ask started from around $8 in the morning and it went to $17 by the close. I never saw the ask at 19, that too for half an hour. I am really clueless. On the one hand, the quote I saw the entire day made perfect sense, but suddenly out of no where, IB talks about ask at $19. Dan, the quotes you are referring to, are they from some source, other than Globex? Because, believe me, I am sure you know, the advantage of Globex is there is always bid/ask, with size of 60-150 AT ALL times. Please for my sake, if possible, any strike price, check today on TWS. I promise, there will be always be a reasonable bid/ask. But I just don't know how to convince IB? If you look at the times/sales chart posted by Midland on IB thread, it makes perfect sense to me and infact that is what I observed the whole day. The question now comes to, should I believe what I saw on Globex/TWS the entire day, which made perfect sense, OR I should believe IB source. In fact in the morning I had a trade executed at 12:11:58 on GLOBEX at $9 Thanks for your time on this issue...

To: Dan Duchardt who wrote (816)	3/20/2003 12:35:56 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 1064

Hi Dan. Can you give me your thoughts on the following. I have been selling the cpn 2005/2.5 puts short, on and off,for the past several weeks. My average price is 1.5. This is much too rich for a 3 dollar stock with the volatility of cpn. However I have been surprised to see blocks of 100 or 200 going off almost every day and the bid/ask size has been 100/100 by both pacific and ISE. After calling the pacific exchange the only explanation I get is that is what the market makers policy is. Do you know of any way to get an honest insight into what is driving the price setting level? I would load up the boat, except what is too good to be true is probably not true. My assessment is that cpn will survive and if so the return of 1.50 for a 30 cent margin commitment is a great sell.