Question about option fills

Hey ETers,

Let's say you see size 7X80 (bixXask). And you put in a limit on the ASK, you should be filled instantly.

For some reason, on Robinhood, many times I don't get filled on the ask! WTF?! Such crooks. There's even size on it.

And when I go to sell, there's size on the bid and i try to hit it and odn't get fill. wth.

Is it because of PFOF? They fill you when they want to?

just cirous.

 

Change brokers, try www.interactivebrokers.com , they will route to one of the thirteen options exchanges with the best price with their smart routing. $0.65 per contract $1 minimum.

 

Your problem is you're using Robinhood.

 

Sounds like old size(data) sitting on the offer to me. Most will execute instantly unless the qoute you got does not refect the current Market. Today I bought BURL Calls, DLTR Puts, BBY Calls and certain Exchanges showed false size I know from experience those bids and offers are long gone so basic quotes will not help. Do you have Level 2 OPRA quotes?

 

I have Robinhood, IB, Merrill Edge, and Tradezero. And Robinhood fills are the worse. They just hold onto your order and fill whenver they like it. I still made nice money from them for swing trading. For daytrading, forget it!

The most ridiculous thing was during optin expiration. I tried to get out and they wouldn't let me. WTH?! There was size on the bid to sell too.

So eventually they assigned me. Luckily, I was able to sell at a small profit the next day after assignment. I didn't want to get assigned. I want to get out. But no, they wouldn't let me outl

I emailed their support. They gave some bullshit story about it's their rules for option expiration. blah blah. Just plain ridiculous.

 

To me Robinhood is good just for buy and hold. For the rest I use other brokers.

 

Have TD Ameritrade and most times you hit the Ask and get filled real quick. You are already paying the full market price. Other times, you hit the Bid and the Bid keeps going down. Market makers will play games at times to panic you into selling at very low prices. Do not fall for it. When I see it, I cancel my order and wait the next day. Chances are good the prices would be higher as the market makers unload the options they bought dirt cheap.

 

Maybe that is why/how they can offer zero commissions for option trades. They make money on bid/ask.

 

Just tick the fill or kill. And RH? Why?

 

There are 16 (maybe more now?) options exchanges. If there is an offer at one exchange and you are paying the offer, but the order is sent to another exchange, you might not necessarily get filled. So say the offer is at the PHLX exchange, but your broker routes it to the EDGX exchange and you are trying to take the offer. Under NBBO, EDGX should route the order to the PHLX. What I have found is if the trade is very "good", a MM on the PHLX may take it first. This doesn't happen often and you generally should get filled on the order though.

Note that this costs the broker lots of extra fees which they generally eat. First they pay a "routing" fee to the new exchange, then they pay a taking liquidity fee (if that exchange charges one).