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I use Dreyfus http://www.tradepbs.com/ for OEX Options. $1.75/ contract
with a $15 minimum in and out.
In order to decide which Option to trade, you need to look at current
liquidity/volume and how far "in" or "out" of the money you need to be to
get a decent Delta and narrow Spread. Maximum Delta for in-the-money OEX
Options is about .5, so you need to determine how many contracts are needed
to mimic the Index-- assuming that's what you want to do.
BMI Quotes as well as Bid/Ask are sometimes reliable, sometimes not-- so it
is best to get current data from your Broker. Dreyfus initial order
response screen is pretty good for current Market status, but also not
foolproof. After you've watched the Index and the Bid/Ask for a while, you
will get a feel for where your order should be placed and what you need to
do to get the Fill that you want. I generally use Limit orders and have the
Market meet me, but sometimes risk not being filled. Unfortunately, Market
Orders are subject to the worst fills-- especially if liquidity in the
contract you want is low.
_____________________________________
At 02:52 PM 2/16/99 -0800, you wrote:
>A friend asked me the other day about day trading OEX options using her
>system. Her system appears sound but we were unsure of slippage and
>brokerage fees. She needed to know what a reasonable OEX day trade commish
>is, and what other types of problems she could expect day trading trading
>OEX options. Since I haven't done a lot with the OEX, I couldn't give her
>an answer but I told her I would pass along the question to the list.
>
>Could someone provide a run down on what a reasonable day trade commish is
>for OEX and typical slippage. Any other advice with regards to your
>experience trading the OEX would be greatly appreciated.
>
>Thanks,
>Brian.
>
>
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