Exchanges(CBOE)/IB - What is this trick?

Discussion in 'Options' started by NoMoreOptions, Jun 20, 2003.

  1. thanks vega!

    Ice

    :cool:
     
    #21     Jul 2, 2003
  2. It's really a "buy" order... and would at most places not be considered a separate long position in the same option contract that you were short preceding said order!

    I am however allowed, at one firm where I have accounts, to be long and short the same month/strike

    Ice:cool:
     
    #22     Jul 2, 2003
  3. vega

    vega

    But in a different account ? I'm assuming that the only reason you would do this is if you had two systems that you wanted to keep separate, or if they were hedges against something else in the accts. If it's just two systems-type trades and not being used to hedge different positions in those, I would consider netting them out and keeping track of the results on paper and then transferring the p/l from one acct into the other instead of paying double commisions and margin. Anyway, I'll be more than happy to try and answer questions relating to how things happen on the floor. so fire away if you got any questions.

    Vega:D
     
    #23     Jul 2, 2003
  4. thanks for your comments. However, my order was electronic sent via IB TWS. THAT is why I'm so confused.
     
    #24     Jul 2, 2003

  5. This is easy to explain since options on this stock are traded on multiple exchanges... you simply found a better offer at a different exchange than you were currently bidding at/on. (AMEX/CBOE/ISE/PSE/PHLX...)
     
    #25     Jul 2, 2003
  6. vega

    vega

    If it was electronic with IB, then the only thing I can possibly think of is if the stock was in a fast market, and somehow the quotes were down, or if the exchange had one of their famous "system outtages."


    Vega
     
    #26     Jul 2, 2003
  7. Vega, are you forgetting that I'm talking about options on OEX?
     
    #27     Jul 2, 2003
  8. vega

    vega

    Forgot that you were talking OEX. OEX, NDX, and SPX are probably in a fast market more than any other product at the CBOE. Generally this will happen anytime the futures start to bounce around or the autoquote is messed up. I think there are a few people on this board affiliated with IB that may be able to give you better advice, but remembering that its OEX your situation doesn't really surpise me at all. Although I probably didn't answer your question, I hope some of it gives you a little insight into what goes on down there.

    Vega:D
     
    #28     Jul 2, 2003