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To: E_K_S who wrote (30387)4/29/1999 3:42:00 PM
From: Doug  Respond to of 45548
 
Eric: It is usual for an MM on a quiet day to open a large Neutral position with a forward up bias. They open that position by Buying the stock and purchasing a LEAP simultaneously. If the stock runs up they sell the stock first and then close out the LEAP which trails.

The big advantage for them is that they do it at their Ask price w/o commissions. As a small Investor the spread and Commissions do not make it practical.