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To: JZGalt who wrote (15543)	3/19/1998 9:02:00 PM
From: SJS	Respond to of 95453

Geesh. You want to do this on options too? Damn...that's REAL hard, but we do try it. 1) Options out of the money move slower, like a lumbering turtle. Try 1/16 over or under the bid/ask. Probablility 30%. Learn patience. 2) Spreads are usually 1/4 out of the money, 3/8 to 1/2 the deeper you go into the money. Use split difference approach. MM want the 1/8. 3) Options traders know how valuable 1/8 and quarters are. It's hard to knuckle for them. Splitting the difference works best. Occasionally someone will "choke up" because they really want that side, and you can get a good price at usually a 1/16 spread. For example. If the spread is 1 1/4, 1 1/2, and someone want to really buy the options, they will BID 1 7/16. Now if these are options you want to sell, LUCKY YOU. Hit them at 7/16 (the market) and you're golden. Use a limit order at 7/16, as it may evaporate quickly and you're back to 1 1/4, 1 1/2 are you're executed!!