Options outcry market, All or none order.

Discussion in 'Options' started by noob_trad3r, Jan 19, 2009.

  1. When you trade options does your order actually go to some guy on the CBOE pit and into the open outcry trading.

    That would be kind of neat actually, if you put in your order and it ends up down there. Or is it 100% electronic now. I read that CBOE uses a hybrid system, part electronic part openoutcry.

    What causes an order to go either way?

    Also if I want to sell options I do not want to get part filled.

    lets say the bid is 73 cents, ask is 80 cents and I want to sell at 77 cents lets say for 10 contracts I do not want to get partially filled. how low on the totem pole will my order be?

    if the bid then goes to 77, will I be the last last guy to be filled because it is an AON order or will I get filled if there is enough buyers at 77.
  2. All-Or-None orders are not permissable. Orders are subject to partial fill. Otherwise, you bring about the potential for spoofing, abuse and bogus markets.
  3. On Etrade pro there is a check box for AON and it did place it. so I guess what happens then is they see this and just throw it out even though the software allows for it.
  4. Okay I am reading abit more on this. Contingency orders like AON are permitted by the CBOE

    I found this interesting little PPT on how orders get processed.

  5. Ask your broker how they do it because the answer is not universal.

    Any time a standing bid for your quantity shows, your broker's software should hit that bid. Any time fewer are bid, nothing happens.

    AON orders have no standing and can be traded through.

  6. Etrade will fill AON options orders.

    ie: if you see a bid 1.02 ask 1.05 and stick a AON sell to open 30 contracts smack in the middle limit 1.03

    You will get filled if the bid hits or crosses 1.03 and there is enough open orders.