How much time does an option trade to fill?

Discussion in 'Options' started by nobodye2, Sep 6, 2012.

  1. nobodye2

    nobodye2

    Hi, i'm a newbie looking to give money to the market :) . i've been in a simulator trading options the last few months with pretty good results. And yesterday was the first time that i daytraded options. I bought 90 AMZN puts with expiration on 7 this month, at 0.56 (stock at 247.3+ i think), and sold them at 0.92 (stock close to 245.65). A pretty good trade, =). But i wonder if it was reallistic. I mean, there was good volume at that moment, 2000 something, and i find out the best moment looking at intraday charts. The price of options was delayed by 15 min (i look at google finance that is less delayed than the simulator i use it looks), so i had that in mind too when placing the order. i had a 45 min window to sell in a really good profit. In real trading conditions could i have done that?, the order would have been filled?

    So the question is that, and that of the title, on stock brokers online like ameritrade, etrade, etc. I know it depends on volume, so im talking in stock with good options volume and open interest, like goog, appl, spy, fb, etc. And dont think that i pretend to daytrade options, it looks pretty risky for me, but im just curious.
     
  2. RE: How much time does an option trade to fill?

    That's sort of a tongue twister. This is a well known tongue twister: "How much wood would a woodchuck chuck if a woodchuck could chuck wood? "

    :)
     
  3. nobodye2

    nobodye2

    the question was: how much time takes an option trade to fill?...you know what i mean by that! :mad:

    Sorry for my english...:)
     
  4. Faster than it takes you to submit a post to ET. Unless you try and nickel and dime them with a limit order between the bid/ask spread, that can be penny wise pound foolish at times.

    :)
     
  5. nobodye2

    nobodye2

    Thank you diaoptions. In the case of the simulator i placed a market order. Lets say the bid was 0.92, ask 0.97, i've would get maybe less than 0.92 sellng the 90 options in real life?. If i would had placed a limit order, lets say 0.85, and bid was 0.92 and ask 0.97 for about 15 min. Same question, I could have sold all 90 of my options at 0.92?, i assume it depends on how much people bids at 0.92?:confused: . Or market makers would take it?, specially bearing in mind that its not that much money :confused:
     
  6. I have had orders take about 1-2 hours to fill.

    (Limit orders)
     
  7. Actually it is quite a bit wider when trading depending on the option.
     
  8. 1. The simulator probably fills you based on other fills which actually occur, which is misleading.

    2. MM will not do you any favors just because you are placing a small order.

    3. If you place a limit order to sell at 85 and the bid/ask is 92-97 you will usually get filled for all of them at 92. If you place a limit order to sell at 94, you might not get filled at all unless the bid moves to 94. If the bid size is very small and the options are not liquid, you might get multiple fills from 92 down to 85 for your 90 contracts.
     
  9. yea it takes some time when you have the pricing wrong, and when your not watching level 2 stocks you cant really know what the order are.

    When you place a limit order, your hoping it gets filled based on the pricing of that moment, one price change messes up the whole order especially when i use advanced orders, and try to setup stops, and oco's and its super difficult to be fast at calculating but when you get good and seasoned you'll know what amount to put in ahead of time based on the orders going in.
     
  10. nobodye2

    nobodye2

    I really appreciate all your answers. Thank you

    About point 2., yes, i think nobody does you a favor in the markets, i just thought that market makers could take my order because of how they work. Point 3 basically cleared all my doubts.

    And what percentage of volume and open interest were those orders?
     
    #10     Sep 11, 2012