Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Gary Wisdom who wrote (36322)	11/18/1997 4:41:00 PM
From: Markas	Respond to of 58324

Options Trading-Random thoughts...Questions. Anyone here have any thoughts, comments, suggestions regarding placing options orders right at the bid or ask versus buys below the bid and sells above, then waiting for the price to move to you? Various people, as well as my own analysis, suggest pros and cons for both approaches. No one I know suggests orders between bid and ask, as your order will be "leaned" on, and only filled if the underlying security moves against you. To date, I have had excellent results placing GTC orders and waiting for the market to move to me. On some trades, only a few contracts traded at my price, so I doubt I would have had time to get an order in and filled even though I am able to watch the market closely most days. Just thought this would be a basic, but interesting topic for debate.

To: Gary Wisdom who wrote (36322)	11/18/1997 5:02:00 PM
From: Markas	Read Replies (2) \| Respond to of 58324

Gary, (S&M for options aka Point'O Pain) I've read you comments regarding the effect, if any, of the open option interest on stock price as expiration approaches. I think you should take another look at this, maybe with some revised expectations. As pointed out by others, recent strength, news, momentum, etc have somewhat overcome the claimed effect in recent months. However, I suggest that the effect was present, but manifested as a drop to within 1/2 or 5/8 of the "pain point" during the week prior to expiration rather than the stock price being pegged at the "pain point" on expiration Friday. I don't think we will retreat back to 26 this week, but I don't want to bet against the "magic" options effect either(at least in my trading account). I won't be buying again this week unless we get below 30. Next week is a different story. Not being argumentative, just sharing my thoughts, Markas