I do the same thing with wide spreads on leaps (covered calls). If the bid/ask is say 70 cents apart...I will go downward 5-10 cents (depending on the market allowance) every 5 minutes, depending on the situation. I'll wait till the MM walks away...Being very patient (since it's over a year out)...No hurry. I'm in the middle and no one is at my price. I'll keep an eye on the stock every few seconds (manually...Fidelity/Schwab). If I think I will get bought, I'll just hold there. After a few minutes and maybe a small decline in the stock...I'll drop another 5-10 cents. I will usually get executed at that point. If not, I'll stop watching the stock...Better things to do. I'll just keep it there for the "day only" or if I feel comfortable with the location, I just do a "good till expire"...Schwab is 60 days...Fidelity you can choose the date. With Schwab, I'll come back and look at it in a day or two. These are usually on strong industry leaders....Think ADM, XOM, Apple. Just me.
Walk Limit Orders help option traders work and manage their single and multi-leg option orders to try to get the best available price on their order. In this demonstration we’ll go over what a Walk Limit is, how it works, and how to enter a walk limit order in StreetSmart Edge. Before we get started, please take a moment to familiarize yourself with the following disclosures. The Walk Limit Order type is designed to help option traders work their option orders more efficiently. Option orders, such as option spreads often involve quote spreads between the bids and ask. In an intent to try to get the best possible price option traders often cancel and re-submit their orders multiple times. A Walk Limit order eliminates the time consuming process of manually modifying equity option orders by automatically updating the traders order to try to get the most favorable price. When a Walk Limit order is submitted it is a limit order at the designated start price. The limit order will remain open until executed or until the designated time increment has passed. If the order doesn’t execute within the time increment it is auto cancelled and replaced with the new limit order at a new price determined by the price increment. The order will continue to adjust itself, or “walk” toward the end price, until it is either cancelled or filled. If and when the end price is reached, the limit order will end its walk and remain open as a limit order at the end price. To enter a walk limit order for a multi-leg options strategy, select the start price and end price, both of which should be within the NBBO best bid/best ask spread. Multi-leg orders default with the mid-point as the start price and the natural price as the end price. Single leg option orders default with the opposite side as the start price, such as the bid when buying an option, and the natural price as the end price, such as the ask when buying an option. Next, select a price increment, this is the amount that a debit order will add to or a credit order will subtract from the starting price each time the order price is changed and resubmitted. Finally, select the time increment between the default of 2 seconds up to a maximum of 60 seconds. This is the amount of time each iteration of the order should remain open before being automatically cancelled and resubmitted at the new price. Once submitted, Walk Limit order can be tracked in the Account Details tool on the Order Status tab. In Order Status, you can see both the start and end prices as well as the current price for the limit order. To view the details, click on the row to select it and then click on Order Detail. That completes this demonstration of Walk Limit Orders for additional information and education on StreetSmart Edge’s tools and features, please check out the learning center and online help manual, both of which are located under the help menu.
I have sold deep ITM LEAP options (eg a 95 delta call with 90 DTE) for less than intrinsic value. I don't want to repeat that mistake. It was on TLT for chrissake! Pretty darn liquid
I assume this is Schwab's platform. Do the other "real" options platforms have the same walk limit order feature?