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.
A spread doesn't have to fill where the corresponding bid offers are. It's treated as a separate instrument in a way.
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.
the market maker saw your order as a guarantee! they wait till they buy it cheaper and sell it to you at your limit.
Possible each leg was at a different exchange so you were seeing the best offer but not able to transact at that price.
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