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To: nihil who wrote (72844)10/18/1998 7:55:00 PM
From: Geoff Nunn  Read Replies (1) | Respond to of 176387
 
nihil - interesting comments. The point you made that one should expect to find larger spreads on inactively traded options is well taken. For what it's worth, CBOE data do show that LEADO on Fri. had a vol of 108 not 12. Can you provide a link for the chart you referred to?

In an earlier post you said you thought the open outcry setup is used on all 3 exchanges (CBOE, AMEX, Phil.). I was a little surprised to hear this since, as I think you're aware, the AMEX uses the specialist system for trading stocks. On the NYSE the specialist system all along has allowed for execution of intra-spread limit orders. Therefore, I would assume the same may be true of trading stocks on the AMEX. Of course, even if intra-spread stock trades get filled there, that proves nothing about options. I guess all I'm saying is, perhaps the system for trading options on the AMEX is not open outcry, and the opportunities for getting intra- spread executions depends upon which exchange the option happens to be traded. Just a thought.

Geoff