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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: molemania who wrote (27694)	11/2/1997 7:21:00 PM
From: David Weis	Respond to of 58727

Dave --- yes, Market Orders can be VERY Dangerous. Do you want to sell these for say 2 3/8?? I'll buy them!!! It's a lot better to either call your broker and put in a Good To Cancel order to sell them at say 10 5/8 or wait till they start trading and your broker can give you the current bid/ask. David

To: molemania who wrote (27694)	11/2/1997 7:26:00 PM
From: Fred Weiss	Read Replies (1) \| Respond to of 58727

>>>Can someone tell me if it is dangerous practice to put a market order in on a thinly traded option. I want to sell just 2 contracts at the open tomorrow and I am thinking about putting it in at market. The last bid/ask was 10 5/8 by 11 3/8.<<< Don't know that I'd call it dangerous but you certainly won't have any slack cut in your direction. At the very least, you might want to enter a limit order at the Bid. Better yet, check on the anticipated opening half an hour before the market opens and gauge yourself accordingly. For example, if the market is going to open up then you might want to raise your limit price. If down, then you might want to lower it. My understanding is that the options MM's have 15 minutes in the morning where normal rules of free markets don't exist and they can pretty much do as they please with your market order. Hope this helps. Trader Spud

To: molemania who wrote (27694)	11/2/1997 8:52:00 PM
From: Brad Hill	Respond to of 58727

Dave--I've never placed a market order for any stock or option. I've placed well over 200 trades in 1997, and they've all been limits. Funny you should bring this up, as I was just reading an article in today's NY Times Business Section about the value of placing market orders instead of limits! Obviously, I don't see eye to eye with that writer. Anyway, the only reason I can see for placing a market order is if you want to dump your position fast at any cost, and you don't want to chase the price if you expect volatility. Just my two cents... -- Brad