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To: Geoff Nunn who wrote (81893)	11/23/1998 11:28:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

OT Geoff, the devil is in the details. You have assumed equal risk across all options, but I believe that the writer of an option has less risk than the buyer of an option, and that for covered calls, the writer of an in the money option has less risk than an out of the money option writer. Depending upon how deeply in the money the option is written, the risk of the in the money covered call writer is an opportunity cost. Now, in writing out of the money calls the risk is mainly the drop in the price of the underlying stock. I guess what I'm getting at is that before we can have any meaningful debate we need to better define what kind of options we are talking about. I personally like writing out of the money covered calls. TTFN, CTC

To: Geoff Nunn who wrote (81893)	11/23/1998 11:32:00 AM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

options cartel To Chuz, nihil, Bachman and all: The WSJ has an informative piece today on the lack of competition among the existing options exchanges. There is a gentlemen's agreement among the exchanges that each can list certain options on blue chip stocks without competition, according to the article. The article goes into the history of this arrangement, and the failure of SEC to police it. The piece also mentions that a competing new all-electronic options trading system is in the works, and is expected to go into service in Jan. 2000. The article can be found on p. B13D.