Order not executing

Discussion in 'Options' started by EliteTraderNYC, Mar 29, 2012.

  1. Hey guys question for you, anyone ever had this happen before? I had an order - an options spread just sitting there for awhile, initially it was in between the bid/ask, but the ask dropped to my limit price, then the ask went below my limit price and the order still did not execute. Eventually it did execute, about 30-60 seconds after going below my limit order price (I was buying a put spread). Filled at limit price.
     
  2. A spread doesn't have to fill where the corresponding bid offers are.
     
  3. A spread doesn't have to fill where the corresponding bid offers are. It's treated as a separate instrument in a way.
     
  4. stoic

    stoic

    What I look for on a spread (Limit order) in for the options to be at the natural.

    That is to say that the limit can be accomodated if the buy side is done at the ask, and the sell is done at the bid. Plus it may have to be there for the time it takes for any orders ahead.
     
  5. magicz

    magicz

    the market maker saw your order as a guarantee! they wait till they buy it cheaper and sell it to you at your limit.
     
  6. FSU

    FSU

    Would be helpful if you state what the spread was and what the product was.
     
  7. uptickk

    uptickk

    Possible each leg was at a different exchange so you were seeing the best offer but not able to transact at that price.
     
  8. magicz

    magicz

    you're kidding right? that made no sense
     
  9. rmorse

    rmorse ET Sponsor

    Actually, that did make sense. And if one leg was a small lot that did not match what market makers are willing to play at, you might not get an execution. You need to find one "person" to do both legs.

    Bob
     
  10. uptickk

    uptickk

    Agree with Bob - The broker isn't going to be on the hook by legging into a spread for you.
     
    #10     Mar 29, 2012