Etrade does not accept opening Market or Stop on Quote option orders are during non-market hours or within the first three minutes of market open unless the option has already traded. The firm says that its policy is intended to protect account holders against illiquid markets and unexpected price swings at the open. Does IB extend the same restriction to its account holders? Does anyone here have experience with executing market orders on options at market open (before 9:33 AM)?
It is almost never a good play to put a market order in for the opening. You are far better off putting a limit order in at a price you would like to buy or sell. The problem is opening quotes can be very wide, and you will generally be screwed. There are many different options exchanges out there in you will be filled at the market quote on the exchange your order is sent to.
IB does allow them. Though I did get screwed a few times and usually promise myself not to buy at the open again, unless I’m the one fishing for good deals and use reasonable limit. Just a few weeks ago my system advised me to short DRYS pre-market so I placed a limit order on a few $5 puts at $1.75 ea and got them at only $1.45 at the open. Then I found out that DRYS was being acquired and those puts were worth only $0.10 already when I bought them... (basically I’ve lost a few $hundred due to market makers not having problems with selling crap at whatever price they can get)
I wouldn't even consider sending a market on open order for options. Your sending in a blank cheque. If you really wanted in I'd look at sending a marketable limit ( limit order above ask for buy or below bid for sell). Think you'd still be way better off working an order.
Thanks. I’m looking to buy the option at best possible price associated with the 9:30 opening print of the underlying stock. A limit order could make sense, but it also risks missing the trade.
A market order on options is the same as giving all your personal identity info to a robo caller. Maybe, you will come out OK, on the other hand ???. Years ago I had been trading heavily on a liquid option and I sold 50 options on a big open position, market order. I got 10 at 100% price, 10 at 80%, 10 at 50% 10 at 20%, 10 at 10%. Upon protest and pushing it to those who are supposed to protect us, I got back the biggest line of a crap from the pit, about a momentary lack of liquidity, volatility plunge, etc. Nothing abnormal had happened that day. They only broke the last 20 upon pressure. I was shocked. Not saying all market makers are thieves, but there are some thieves among them. I learned a market order is a bullseye on your wallet and no one is going to save you.
99% of the time I get great fills on market orders in all markets , especially options Most of you have just been unlucky Be adventurous !