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Strategies & Market Trends : Option Trades -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (744)	2/25/1998 2:05:00 AM
From: Sowbug	Read Replies (1) \| Respond to of 2341

I'm looking at April 30 calls on MRVC, which took a $5 drop today to $23 on news of a doubling of acc'ts receivable. This will be my fourth option trade, so I'm new to options. I believe the stock will bounce tomorrow and gradually move back to its $28 range. Thus, I want to buy options and sell them quickly because I believe the options may double tomorrow. At close today, VQXDF's ask was $0 3/4, dropping from $2 5/8 the day before (ouch!). Question: If I put in a limit buy order tonight at 7/8, and trades go through at the open at 3/4, am I more likely to get filled at 7/8? Or will I still go through at 3/4? Is it smarter to put in a limit for 3/4 and risk not getting filled, or to do what I'm doing (which is, in my mind, more likely to get filled, but possibly also makes me into a sucker by saying "Duh, I'd like to pay 3/4, but I'll still pay you 7/8")? Or would a market order be better if the bounce is extreme and immediate? Thanks, all.