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Non-Tech : Paired Trades and Hedging Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (29)	11/16/2004 6:31:55 PM
From: Biomaven	Respond to of 136

if the stock market says one thing and the options market says another, the options market is probably right. Probably true. Options traders tend to be more sophisticated. One big problem with options trading though is that the spreads will usually kill you. It's a bit like playing at a casino - the house starts with a very large edge. So your low commissions are not that relevant - on all the thinly traded options I tend to be interested in, you simply can't do anything fancy or the round trips or multiple legs will simply make the options market makers very happy. Peter