IB model optin prices

How accurate is the options model in IB TWS? I was 3.50 bid for an option the model said was worth 4.17 and got filled. This was for may futures expiry.

 

A model is just a model, it gives you the price based on the inputs, so if the volatility that the model uses is different from what the market is implying then you'll get a different value, but does that really mean the option is mis-priced!?

 

It's now saying it is worth 5.39 but is 3.75 offered.

 

Ask IB what inputs it uses? I.e. where does it get it's volatility estimate and so on...

 

You'd better do some serious reading fast before you go broke