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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (16809)	4/18/1998 11:24:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (1) \| Respond to of 94695

"know what the majority of the people in the options (pool ) actually paid for them can only be done if you chart the option..by getting in well under them you have an edge..that edge saves your butt if the stock don't do what you thought it would..the way I try to get in them (out of the money ) and if the stock does any kind of reverse.. the die hards who are already losing will grab more to average down" hmmmm averaging down is common..... and you are saying MM's pump the price because of demand... however, using your theory...you are getting in underneath them...which means the price of the option is already going down...thus giving them reason to average down..thus demand pumping the price...thus you are paying a "puffed" up price...

To: James F. Hopkins who wrote (16809)	4/18/1998 1:06:00 PM
From: yard_man	Read Replies (1) \| Respond to of 94695

The option price isn't just where the stock is but also includes a little bit of where the guys in Chi-town think it's headed in the next hour or two. I've just about given up on the limit orders. Guys took me for over 1/2 of a point on my sale of some options that were almost 10 points in the money on thursday -- one day before exp. I guess they thought the stock was going up. <g> (It went down on Fri -- of course.) I thought the arbitrageurs would keep this from happening so close to expiration. Still getting an education