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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Robert Schling who wrote (24884)	10/5/1998 9:36:00 PM
From: MrGreenJeans	Respond to of 70976

Options-10 Contract Obligation Don't forget that the market maker has an obligation to fill at least 10 contracts at the current bid/ask. For larger trades he can start to play those famous games of jerking the bid/ask around. That's why I always zap them first with 10 contracts at market whe I'm in a hurry. If they won't take it, complain to your broker and he'll take care of it for you. Right and Wrong. Right-they have an obligation at the quoted bid / ask to fill 10 contracts but not necessarily your 10. Wrong-If you buy 10 options for example and at the same time another order comes through for the purchase of 3 options the market maker may fill the 3 buy order first and then fill a buy order for you for 7 options thereby fulfilling the 10 option bid / ask requirement. Therefore, the other 3 options that you wanted to buy that were not filled may be not be filled at the current bid / ask.