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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 (819)3/22/2003 10:30:01 PM
From: jjs_ynot  Respond to of 1064
 
Market conditions for the options themselves ultimately set the price. The Market Maker or specialist will ramp up/down the implied volatility based on buying/selling pressure on the option series.



To: Dan Duchardt who wrote (819)3/25/2003 6:13:38 PM
From: jt101  Read Replies (1) | Respond to of 1064
 
Dan,

inspite of some research, I am still confused about a few issues related to futures account/M2M election. I would like to know

- About 1256 transactions, what are the issues/limitations related to straddle and hedging transactions? I tried to read some material, but I didn't understand it well...

- Which indices and their options are covered under 1256 transactions? (QQQ/SPY/DIA/DJX/OEX and their options also?) I doubt QQQ and its options are covered, but I am not sure.

By the way, is there any difference between DIA (Amex) and DJX (CBOE) options?

I am not looking for a detailed explanation, just a few basic things in simple-to-understand terms...

Thanks...