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

To: Jerry A. Laska who wrote (49386)	8/6/1998 12:07:00 AM
From: nycnpbbkr	Read Replies (1) \| Respond to of 58727

Jerry the best way to sell an option under these conditions is with a limit sell. Think of it as a big wave that crashes onshore and runs quickly up and down the beach. You have to stick your mark on the beach somewhere where you feel the water will just run over you. That way they have to fill you before they can print ANYTHING higher. If you put a limit on a put option at say 18 3/4 and the market falls but comes back in seconds like today, If the option trades anything higher than 18 3/4(say it trades 18 7/8) your done. Either way even if the exchange comes back with "nothing done" your broker will make sure that your done. For the mere reason that who ever paid 18 7/8 for their option would rather pay 18 3/4. My experience tells me this is the best way to sell in a "Fast Market"

To: Jerry A. Laska who wrote (49386)	8/6/1998 12:09:00 AM
From: Dwight E. Karlsen	Read Replies (2) \| Respond to of 58727

Jerry, I used e-Schwab also today, for an option trade. It was in the 10:45AM EST time frame, right when the market hit that second dip which took it just below break-even. I checked a r/t quote for an option, and it said ask was $14 1/8, zero volume (MSH 585 call). I check again in 2 or 3 minutes, it's at $14 1/4 ask. A couple more minutes, and I'm about to enter the trade. I get one last r/t quote, it's at $14 1/2 ask. Obviously the mkt is moving up. Immediately (within 15 seconds) I fire off a buy @ market order. I check the order status two minutes later and see it filled in one minute.......@ 14 3/4. I get another r/t quote, and the ask is at $15 1/8, volume one (mine, obviously). Weird. Bunch of thieves. But at least I got filled. Sometimes I figure I just have to bite the bullet and bend over. $25 for the privilige of placing the trade with Schwab (think of it as "protection tribute"), plus the usual $35 minimum fee for a small option trade.