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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Dnorman who wrote (7674)	6/18/1998 9:27:00 AM
From: Herm	Respond to of 14162

Hi Dennis, My you are full of questions today. 1.MM is this an individual or a company? At times both. A floor trader for sure! He/she may be independent or employed by a brokerage/banking firm. Then of course, we have the open market houses. 2.Is their a way to identify who the MM is in the stocks you are buying for CC? Some MMs clearly advertize their client stocks who they represent. Otherwise, through Level II trading accounts (data feeds) which display the bidders. 3.Is their a way to find out what other stocks this MM is making a market in? Very hard sometimes to pin down. Some names pop up and the word gets out. Guys like Vinik have reputations which people take notice. 4.Is the MM the same for the stock as the options? Generally, that would be the case since they use the options to stage many block purchases/selling. The options provide much leverage and hedge insurance. 5.How do you know what stocks have the volatility to make them good CC Candidates? Every stock will go through periods of high volatility. Take XRAY when it dumped by 6 points. At that point, the PUTs had very high volatility and they jumped up in value. Some stocks are always hot like a great many tech stocks. Just look at the rock n roll price patterns and you will know which ones are hot. Also, the more turnover of the float the more radical price moves.