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Non-Tech : A.B. WATLEY - THE ULTIMATE TRADER! -- Ignore unavailable to you. Want to Upgrade?

To: Brett Verinck who wrote (669)	2/8/1999 3:21:00 PM
From: jebj	Read Replies (1) \| Respond to of 2045

>Hopefully you will be able to keep an account with a broker that can fill your short option requirements and use ABW to your advantage as well. - Brett This is cut from your reply to Jim ref his post that has the same concerns as I. I have spent almost a year studing trading, daytrading and options and although not as knowledge as many I feel I am very far ahead of what would be considered "average" in the trading area. So what am I mnissing here - They say you can not write naked call because of the "unlimited" risk! That has to be one of the dumbest statements I have ever heard! Please show me one single stock in the history of the markets that has gone to "unlimited" amounts! Fast moving, yes - runaway, yes - but "unlimited"? One can purchase an internet stock which may be moving over 100 pts a day on margin but one can not sell a naked call which will move much less in the same given time period? Again, what am I missing here? If one is going to seriously play short term option plays one needs the ability to use all the tools available to set up protective spreads - to not let an options trader to do so is setting him up to fail, IMO. How is one suppose to lose more in an option play than an stock play if one goes about it in the same manner - watching the stock and setting up stops? I must be missing something! jb

To: Brett Verinck who wrote (669)	2/8/1999 5:05:00 PM
From: backman	Read Replies (1) \| Respond to of 2045

brett: Ok, ive installed the software and am in "paper trading" mode. Now, how do i take advantage of the gaggle of information available; ie how do i learn how to read time and sales to my benefit? ive read nasser's book, and am not expecting to get into heavy duty day trading, but, you never know... anyway, some references would be appreciated TIA david

To: Brett Verinck who wrote (669)	2/8/1999 10:39:00 PM
From: Jim Lass	Read Replies (1) \| Respond to of 2045

Brett, Thanks for your help. I'm not out to shot the messenger! I think the short answer is that stock traders, and not option traders are ABW's primary focus. Too bad. Unfortunately, with the high margin requirements to do uncovered option writing, it's not very practical to maintain margin in one account and trade in another. Thanks for the suggestion though. The next best thing I can find to ABW is Preferred Trade. They claim customer's have direct access to RAES, AMOS, POETS, AUTOM, and that clients get to direct their order to the exchange of their choice when the option is multiple listed. preferredtrade.com Their parent company is Perferred Capital Markets, Inc. which seems to be a pretty solid company. I sent my app in last week when it became apparent that ABW wasn't going to work out for me. I'll probably start out small at PT and see how it goes from there. Let me know if the situation changes at ABW.

To: Brett Verinck who wrote (669)	2/8/1999 11:57:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 2045

Brett, I too have considered ABWatley in the past, and still consider it at times, but the lack of naked option writing is disconcerting. When I select a broker, I want it to be able to handle all of my investment/trading needs. A full panoply of products (including naked option writing), in a discount house, is one reason I am so happy with Fidelity. Frankly, life is too complicated to have to add the additional worry of which account can be used for what purpose. I think your president would be pleasantly surprised by the influx of accounts that could be generated by the lifting of unnecessary restrictions. Gary Korn P.S. I can't figure out what is wrong with handling a naked put. Worst case, the stock goes to zero and gets assigned to the option writer. How is that any worse than owning a stock outright? You handle the leverage problem by deducting some percent of the cost of the stock outright from your client's marginable equity.