Frontrunned!

Discussion in 'Options' started by Quanto, Jan 8, 2024.

  1. Quanto

    Quanto

    Volume of a strike was just 1.
    Is it possible to inspect from which market participant (ie. the four-letter ID of the MM or brokerage firm etc.) this order came in?

    More info: order was placed pre-market, orderbook had Bid and Ask. I took the Bid for my ShortSelling order (actually a CoveredCall, ie. a NetDebit order). IMO it had to get filled as everything was exactly calculated. The new LastPrice is my own offer. Ie. someone else got the fill...

    More more info:
    https://www.investopedia.com/terms/f/frontrunning.asp
     
    Last edited: Jan 8, 2024
  2. newwurldmn

    newwurldmn

    It’s spelled “frontranned”
     
    piezoe likes this.
  3. Robert Morse

    Robert Morse Sponsor

    More details? You know there are 16 option exchanges and even if you are first at a price, they can match it on another exchange. Or, step up in prices a pay a little more. Neither are a violation.

     
  4. Quanto

    Quanto

    In the OP above I just added some more info.
     
  5. Robert Morse

    Robert Morse Sponsor

    Option order books do not show option data in Realtime before the stocks open at 9:30am and then have an opening rotation. The rest of your comment I did not follow. If order to buy stock and sell a call on the exchange COB, someone needs to want to trade with you at that price.

     
    TrailerParkTed likes this.
  6. Quanto

    Quanto

    I don't think TDA sends such CCs out to the exchange COB, but handles it rather internally/locally in-house. Both stock price and option premium were matching for a fill.
     
    Last edited: Jan 8, 2024
  7. Robert Morse

    Robert Morse Sponsor

    ALL option orders get executed on an option exchange by the DMM they route their orders to. Pre market prices as left over from the previous day. They are not live.

     
    MoreLeverage likes this.