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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (10212)	4/1/1999 9:32:00 PM
From: sandbag	Respond to of 14162

Nate, In your example..."this doesn't make sense. Can you clarify for me? If I want to sell a Call (10 contracts).....and it is, say 3/4 by 15/16.....Is this supposed to mean that the MM has a legal obligation to sell this to me at the ASK of 15/16 ??? this is counter-intuitive. How does he make any money selling anything at the Ask??" You are the seller. Therefore the MM is obligated to BUY from you at the bid, 3/4, not the ask. If you are buying the 10 contracts and you hit the ask, then he will fill you because you are now the buyer. Hope this helps. Barry

To: NateC who wrote (10212)	4/2/1999 10:21:00 AM
From: Spots	Respond to of 14162

>> this doesn't make sense. There's a good reason for that: It was wrong<g>. I meant smack the bid on a buy. However, the comment was true, you just gotta go through and correct all the little brainos <ggg>. Thinking back, this has happened to me most often on a sell (covered write). I'd put in the sell order and almost instantly see the ask move up; cancel the order, it moves back. Usually a little yelling on the phone gets a fill, though. Supposedly the MM is obligated to fill UP TO 10 at the inside market. If there's a low limit, I'm not aware of it. If your ticket is for more you should get at least a partial fill unless it's all or none. I've had no luck with AON, incidentally. A lot of these kinds of rules have been changing lately on the naz, as too many MMs were losing money through SOES (they claimed). What a joke -- these robbers wailing about "SOES bandits". "Hey, I stole that fair and square. Give it back!" <gg> Anyhow, perhaps the rules are changing on the options exchanges as well. Probably someone here has kept closer track than I have. Spots