Yes, the way we do it requires that we put buys and sell short limit orders based on enveloping where we think the market "should" open (based on futures etc.). Some retail brokers allow it, some don't ....most require that you have adequate capital to cover all the potential filled orders. The edge that our traders have is that the can put in a $mil worith of orders with only$20K in their accounts etc. Good luck, Don
Don, thanks for the response. one more question i should have asked earlier: how late can you wait to submit these orders to the specialist before the bell? thanks,
Don, do you have any numbers that would illustrate OPG strategy success at various VIX levels? I am assuming that, generally speaking, the more volatility the better, but how does volatility translate into profits? As we may be moving into low VIX territory, will OPG strategy continue to work if VIX is in 10-15 range?
VIX "can" affect the openings, but the primary factor is trading on the same side as the NYSE Specialist on any gaps. But, sure, during times of higher volatility, you have more gaps to play with. For example, the 4th quarter of 2009 was probably one of the best quarters overall. (BTW, zero fills today, my fault a bit too wide, didn't want to buy anything, LOL). Don
Hi Don, I will ask this question again as it was possibly overlooked earlier. I would like to know what is the latest time that an order can be submitted as an opening order? I asked my trading firm and they thought that before 920am eastern your order was guaranted to be filled. Anytime between 920am and the open there would have to be an appropriate imbalance before the order would be filled? could i get some clarification? thanks!!!!
You can submit an order any time before the stock is open, including after 9:30. It has nothing to do with any posted imbalance or indication. They cannot trade through your price, but if the stock opens AT your price you might be skipped or only get a partial fill.
More volatility may mean better fills and more fills but consider that when you have those fills you are in a more risky environment because the market is more shaky.
You "can" enter orders until the stock opens. I advise the unwritten 2 minute rule, and submit my orders about 2 or 3 minutes before the opening bell. (Sorry if I missed it) Yesterday, no fills... Today, 4 fills, 3 winners net up 8 cents. Don