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To: GROUND ZERO™ who wrote (9436)	2/5/2006 8:10:26 AM
From: vixson	Read Replies (1) \| Respond to of 12411

This is known as a "free" trade.

To: GROUND ZERO™ who wrote (9436)	2/5/2006 8:15:41 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 12411

Yeah, I used to trade them a lot. There are various strategies. Went to a couple of Larry McMillan seminars about 10 or 15 years ago and bought his book, which at the time was the must have tome on how to trade options. A Solomon options trader reco'ed it to me. I forget what that particular strategy was called, but the names of the various trades were something out of a sci-fi novel. I don't recall the name of his book, but just saw another very good one on my shelf, Option Volatility & Pricing by Shelly Natenburg. If you really want a good read on options I'd recommend that one.

To: GROUND ZERO™ who wrote (9436)	2/5/2006 3:40:46 PM
From: Kirk ©	Read Replies (1) \| Respond to of 12411

"BTW, to show you how versatile options can be, at this point in my current set of positions, there's a way I can actually have a lock on a guaranteed profitable trade, here's how: if I now bought two March 1275 Calls at about 15 each, that would cost me a total of 30 points, I already sold nearly 85 points in premiums, this would give me a sure thing on 55 point between now and the March expiration... this is very tempting, I can then go on vacation and still take 55 points from this market...<g>" True, but if you are simply long or short and ahead, you could cash out your position when ahead and do the same, and often make more since there are fewer commissions and a lower loss to the spread on options.