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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Dan Courtemanche who wrote (1249)	7/12/1998 2:09:00 PM
From: Dave.S	Read Replies (3) \| Respond to of 1598

Dan: The trading rules do not take the open interest of a options class into account. The MM's owe you the guaranteed minimum fill (10 to 20 contracts) no matter what the open interest is. As a Pro trader I sometimes have to respect the interests of the MM's if I want to stay in their "good books", even if the rules are on my side. I have to trade with these guys and they can sometimes give me a break, so I watch out not to take advantage of their mistakes or situations which put them in risk. For example, the wrong price may be posted for some reason and I could make a quick buck by forcing the MM's to trade at this price. When BLD was trading at $180 and most clients were trading only 1 or 2 options at a time, the MM's put the clients orders in the book even though they were not the required 10 options. They did this because they wanted to keep track and not trade through the clients price. I could have taken advantage and ask for fills of 10 options but this would have exposed the MM's since the stock was illiquid and quick moving. Everything is not as it appears in trading. Dave