option price change

Discussion in 'Options' started by clarodina, Feb 10, 2014.

  1. Why is that within the same option group expiring the price change varies alot has the stk price increase .20 the option price may increase 0.05, 0.35 and some decreases

    would loc order allow trader to get the option fill at last price listed?
     
  2. xyannix

    xyannix

    Read about the option skew and the "greeks", delta, gamma, volatility, etc.
     
  3. 1245

    1245

    LOC orders in options are not a great idea. Some options MM executes your order 'near' the close. You have no expectation of getting a good price. You would be better off using limit orders in liquid tight spread options with a minute to go. With less liquid options and wider spreads, give it at least 15 minutes if you need to get out by the close.

    1245
     
  4. FXforex

    FXforex


    LOC = Limit on Close


    Would not the fill price be the limit or better?

    If you have to get out by the close I would use Market Orders.
     
  5. Doobs789

    Doobs789

    Google "option delta"
     
  6. 1245

    1245

    You might not get an execution with LOC. Also, at the close the Best execution, no trade through rules don't apply.

    For the same reason, you can get a VERY BAD execution with a MOC order in options. I would recommend NOT waiting until near 4pm est.
     
  7. if you short a itm call and there is 15 period to expiry would the call get exercised immediately?