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

To: Barbara Barry who wrote (30077)	10/3/1998 6:16:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 94695

Barbra, you can place a spread order! Sell option on 100 and buy option on 105 for let say $$$ credit or debit depending how you want to play it. The market maker sells you the spread, you pay twice commission but the time factor affects both options. The upside is limited by the spread but so is the downside and certain elimination to time erosion. You also must watch your order as if it moves toward your benefit, they do not fill it and pocket the money, if you see that call your broker and he will settle it for you. Commission on 5 contracts are usually $20 to $30 per transaction so you lose 1/8 for some safety. If you sell the expensive part, you even may gain over time if the market stays the same. BWDIK Haim