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Greetings,
It is indeed because they are traded in different pits. I was a desk
trader and it would be 2 separate phone calls to the floor on every
occasion when it is a future and an option. In addition, I don't think
Lind Waldock would feel comfortable handling the order as a true
"spread" because if it were, it would be given to the floor broker as
one. The brokers at Lind Waldock are, in fact, clerks in a true sense
and would never handle an exotic order like that.
The only firms I would think able to handle exotic trades like that
would be the major institutional derivative houses like a Goldman, Sachs
or DLJ. Those firms make active principal markets in such options and at
those firms a client would speak directly to a trader. If you're trading
warrants the size they require, I believe those two are the best. I hope
this clears things up.
Happy trading,
Allen Blankenship
Ted Juszczak wrote:
> Hi;
> Lind-Waldock has told me that they will not take an
> spread order to buy a future and buy an put at
> a given spread price, but they will take a spread
> order on two options. Is this common? Might this be
> because, I understand, that the futures and options are
> usually traded in different pits. I would think that a pit
> trader would like to grab one half of a conversion this way.
> Does anybody know of broker who will take such orders or
> for more exotic orders? An example might be one
> based on an underlying volatility or contingent on the
> price of the underlying? Thanks.
>
> Ted
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