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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: ojai who wrote (2230)	1/7/1998 6:36:00 AM
From: steve goldman	Respond to of 4969

Look, its not really double printing. There are in fact those number of buy and sells. You sell to your market making firm, they turn and sell to their customer. There are TWO transactions, yet most would say the mm is an intermediary so they don't count. It could have gone, like on a listed exchange, right from the end seller to the end buyer. What about when you sell to your online firm, they route to a market maker, the market maker sells to another market maker, they bounce it around, daytrading it during the day many time (lets say just between market makers) and at the end of the day it ends up in Mr.Jones hands. Should that be 1 sale, 2,3? You can't draw lines. This is what they mean by double printing, but I take the volume as I read it and don't read into any more since you can't get a clear picture with OTC stocks. Re:Option question: Iassume you meant you wrote covered calls, not wrote covered one and sold naked more. If the options are out of the money and you don't think the stock will pop and you don't care one way or the other about losing the stock, let them expire worthless, there is notthing you do...you enter a transaction in quicken or for schedule d. as sold for x bought back for 0 (zero). If they are in the money, even if you made money (ie. sold for 12, now they are 6) you might buy them back to not lose stock and sell more going out a few more months, this is called rolling options.... Options writers, especially covered writers, do very nicely at times because 70% of all options expire worthless. For those that do Pop and mvoe the way the buyer wants, if you have stock, all you did was not profit as much. if you are naked, you can get killed. The chat site is developing nicely. Currently we are only hosting one session per day from noon till 1pm. We will expand this to multi-intraday sessons. The site is free and is hosted by myself or one of my other traders for the session. As well, chat site users can catch me or one of the other traders, on occassion throughout the day, to ask questions about the market during the day. You can join for free at yamner.com go to chat off the main nav bar. regards steve@yamner.com