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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: RR who wrote (60849)	3/13/2004 2:24:53 AM
From: Jill	Respond to of 65232

Cool. I will study that trade over the weekend. I remember last time we talked about an SPX trade--I think you were waiting for it to close a gap (down) to buy. And I was watching the same thing on the futures-- So you're looking for high open interest for liquidity--makes perfect sense. That is a darn good profit! Although an expensive trade for somebody like me, but I could do a smaller version of something like that. :) Thx again.

To: RR who wrote (60849)	3/13/2004 7:31:19 PM
From: Jill	Read Replies (1) \| Respond to of 65232

Okay, RR, here's another question (betrays my abject ignorance about SPX calls, but what the heck): I am studying the option chain for .SPX on my fidelity browser (I've still kept some $ in Fidelity though I mostly moved over to Interactive Brokers as their rates are so good). Anyway, the April 1125's closed between $18.30 and $19.90, which is around what you noted. March same strike are $6.20 and $7.30. The open interest in March is around double, but I guess it's still safer to go one month out as you did? My assumption here is that's like regular options, i.e. $6.20 is $620.00 in cash? And $18.30 is $1,830 in cash? I'm also assuming you put in a limit order to sell half the other morning. They are liquid enough to do that, right? And some months ago--I vaguely recall--you were waiting for SPX to close the gap, I remember you posting about that, during the dya, and when it did hit that you bought calls as you figured it would bounce...I think it was going down to around 1120 then but I could be wrong, I can't remember the #. So you study charts on your exercise bike? You probably have your telephone headset on at the same time. :) That's how you get so much done!