IB and Options

Discussion in 'Options' started by tntneo, Jun 8, 2002.

  1. tntneo

    tntneo Moderator

    thanks for your feedback guys..
    my size was not too big on these.
    what I don't understand is the market is not really locked, is it ?
    only the SMART route displays a 'locked' market. markets (ISE, CBOE, AMEX etc.. were not actually locked).

    It actually happened several times before I mentioned it here (and on IB's forum).
    I was not dumping, I just wanted an execution to take my profits. And all I could see was my profits evaporate because my order would just not execute ! (while, again, bids were plenty at the level I wanted).

    Routing to the default exchange is what I suspect here, and it sucks big time. It basically makes SMART useless imo.

    SMART was never 'best' at IB (and vice versa). But I needed to know what was the inside 'virtual' market. I won't use smart for options again, ever.

    #11     Jun 8, 2002
  2. looks like a software glitch then...
    can anyone of you guys give a feedback to IB on Mo
    so we can expect to have it fix'd ...
    #12     Jun 8, 2002
  3. ktm



    I agree. I've had the same thing happen a number of times.

    I have never understood the "locked" status. What I see are 5 separate exchanges, not generally linked in any way except by the quote services who put the prices in one display. Some exchanges occassionally have bids that are the same as asks on other exchanges. In my experience, this happens for a short time, sometimes 10-15 minutes, then someone moves on.

    I have never seen the options exchanges "lock" or freeze or anything of the sort. I thought the term was always used to describe the above inefficient scenario. They can't be efficient if they don't talk to each other. In a few years, I guess they will come together - or IB and the new BOX will get them going.
    #13     Jun 8, 2002

  4. If I understand you right; the NBBO was, say 5 bid by 5 offered; that is locked, does not have anything to do with IB.

    #14     Jun 8, 2002
  5. The issue is that when the NBBO is 5 by 5, that is locked and they do not have to honor that market; not a quote vendor issue.
    #15     Jun 8, 2002
  6. tntneo

    tntneo Moderator

    'got you metoxx.
    I still think it sucks and that I should not trust the 'smart' execution when it happens (since I have NO idea where my order goes and sometimes it is hard to cancel too).
    It's also 'good' (in a perverse way) to know I am not the only one with the problem. I have a plan in case it happens again.

    #16     Jun 8, 2002
  7. I definitely think it sucks; they post it they should be forced to trade it, not allowed to fade it. They intentionally lock or cross in a fast market to give them time to react and lean on your order. the worst offender is the Philly with their two minute fills and cancels.

    We ate about 30 trades on Friday in Tyco because of Philly quotes that they would not honor.
    #17     Jun 8, 2002
  8. tntneo

    tntneo Moderator

    I did not know about these nasty tricks. I don't trade options, I only hedge. At least things are clearer now, I can go around it.

    #18     Jun 8, 2002
  9. Welcome to the crooked game in the free world ...
    #19     Jun 8, 2002
  10. maglia rosa

    maglia rosa Guest

    Sometimes (imminent news, halted component stock in an index option) the specialist can put his markets on 'fast markets' which means he doesn't need to honor the markets he's disseminating.

    I don't know if there is a way figure out if the markets are on fast for somebody off the floor though.
    #20     Jun 8, 2002