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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (529)	2/14/1999 2:48:00 PM
From: KFE	Read Replies (4) \| Respond to of 2317

Dave H and Dave S, Good thread. Nice to see a thread that sticks to the subject and has intelligent and informative posts. I was very active in options market (especially spreads) in its early days. Spreads were actually narrower on options than on Nasdaq stocks at the time. Have been an ROP in the past so anything I can contribute to the thread I will try to help. Would appreciate your comments on the following to educate me on current trading practices. Are you getting paid interest on credit balances derived from credit spreads? Recent orders I have put in on equity options at the bid or asked have not been executed and MM's have changed the quote. Is this common now? I'd rather sit on a spiked fence then place a market order on a equity option. OEX wasn't a problem. Still the case? Is it still possible to do a butterfly for a net credit (without legging a side)? One of my favorite strategies was to do OTM credit spreads with 3-6 weeks remaining and cover if it became in the money. Any thoughts on current applicability. Ken

To: dealmakr who wrote (529)	2/14/1999 6:06:00 PM
From: NateC	Respond to of 2317

<This is actually a common strategy for shorts and not rare at all. It is also dangerous if your short position runs against you and the only benefit is the reduced premium for buying back your put position will offset some of the upward movement of your short position. You have to be comfortable with shorting and aware of the risks to use this option strategy IMHO.> thanks Dave....IMHO, I'm not comfortable, nor technically, nor emotionally ready for significant shorting.!