Saturday, August 12th, 2017

Should these limit options orders fill?

If not actually trade stock options, please do not reply. I need answers from real people who have experience buying and selling options for real money. (Note: I have traded options in a limited capacity for eight years, so I’m not a neophyte.) I’m trying a new strategy, SPY options , the SPDR for the S & P 500, which is very active in both safety and options. My strategy depends on the input and output prices of my choice. I’ve been using virtual commerce engine OptionsXpress to test my strategy and have found that this is not unusual for a limit order in the offer or make and have not been filled. I’m not making large orders, a transaction of 5 or 10 contracts is typical. It therefore seems strange to me to enter into a contract of sale at 3. 25 and see the bid / ask to sit at 3. 15 / 3. 20 and yet my order may take several minutes in an open state. OE understand that virtual trading is intended so I’m trying to find out if in real markets, a small order as or better than the current price would ejecutado.Gracias for your reply. I guess maybe my question was not entirely clear. I was trying to indicate that my question was equal to or below the lowest bid (or that my offer was less than the lowest ask), ie I was seeing a situation that should have been executed my transaction, but it was and will remain open for an extended period. I found that if I make market orders filled me prices unpredictable, so he issued an order to a point where I want to know would fill if he did, in fact, relleno.Sobre the theme “large orders” which also was part of my confusion. It was my thought that small orders in the right offer or request to be implemented. I could understand if an order for 500 contracts to remain open, but people actively in the market and an order for 10 contracts in the sale price would keep the easy money in a growing market trend. I’m intentionally trying to keep my contract sizes such that there would be no impediment to my order this llenando.Ahora see that everything I’ve tried to write correctly my original question was wrong and wrote my previous question entered the lowest and proposed to ask a situation that does not translate into a sale.

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3 Responses to “Should these limit options orders fill?”
  1. Net Advisor says:

    Little housekeeping first.

    5 or 10 contracts would not be deemed as a “large order,” especially trading the S&P. A large order might be greater than the prevailing bid/ask volume, or for the S&P 10,000 contracts on a single tape.

    I trade the S&P in high frequency, mostly the puts over the last 2 years.

    If you are looking to sell to open or close @ 3.25 when the B/A is 3.15 x 3.20, the order would not be filled as you would be above the ask by 5 cents, and above the bid by 10 cents. The Bid needs to be hit to try and fill the order assuming there are not other orders ahead of you. This is where time and sales, directing orders to different exchanges, having Level 2 capability is CRITICAL for stock and options trading.

    Trading on hypotheticals is a good learning experience, but as you know trading in real time, in real markets is a completely different experience.

    Good Luck!

  2. zman492 says:

    I think you have some typos that make your question confusing.

    You said caught your error in the original question about the price, but you also later said “my ask was at or below the lowest bid” when I assume you meant “my ask was at or below the highest bid.”

    The part of your question where you specified you were not entering large orders was clear, I think the person who first responded simply misread the question.

    Now, as to the actual question, by choosing a very active option series such as SPY, and by your choice of limits, you should get immediate fills almost all the time. If there is a “fast market” in which the index is changing rapidly you are a little less likely to get an immediate fill since the market can move while you are entering your order.

    If you try to trade less active options, including SPY options that have strike prices far from the current index, you are less likely to get your trades filled. When trading less liquid options it is not that unusual to get a partial fill with the types of orders you indicated.

    There are no guarantees, but from what you indicated I would not expect you to have any trouble getting immediate fills the vast majority of the time.

    Don’t forget that if a position is moving against you and you need an immediate fill to protect yourself you can always use a market order instead of a limit order.


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