I mostly daytrade the ES but I want to utilize OEX options for trades I would like to keep overnight with a set risk. So today I tried my first OEX option trade I bought OXBAN at 4.70 and sold it a minute and a half later at 5.70 First question is does anyone know why the bid/ask and last in tradestation are so delayed compared to IB, just the options not the index. Second question is that when I placed the trade the bid was 4.70 and the ask was 5.10 I place my trade at 4.70 and got filled right away. Then when the bid was 5.10 and the ask was 5.60 I placed my trade at 5.70 and got filled instantly now when I look at the time and sales on tradestation it shows 4 trades at 5.70 and then no trades higher for another 24 minutes. So what gives are the IB quotes that far off or delayed? Is it just dumb luck or is this normal. Thanks MrX
If you're already trading the ES, is there a reason you don't just trade the options on the index futures instead of flipping back over to the CBOE to trade the OEX options? I personally gave up on the OEX options a year or more ago because the CBOE specialist(s) too often had them off auto execute and played games with fills.
Thanks for the response ArchAngel, the main reason is the volume on the ES options is almost non existent but I have been watching them.
mr. x, it seems that you got lucky and made a great trade. archangel, there are no specialists in the oex. the crowd has 200+ traders who use an autoquote system and try to update over 500 quotes. sometimes they are off and we get picked clean. only on blatant errors will things be adjusted. in terms of spread and bang for the buck it's a pretty good deal
Actually, that is a game the market makers play to induce you into playing with them more often...They knew you were a first timer and didnt want you to walk away thinking that they were playing games with your orders, so they gave you a freebie, knowing that you will come back for more and probably do it 5 times as large... Next time you will hit their bid or offer and they will make you sit on it, biding their time while the minis dance around... (Note: I am not serious)
Chiguy, Can you tell me a little bit about how order execution works in the index options at the CBOE? You mentioned there were 200 traders on the OEX. What type of volume would cause a stir (if anything) on these options? I'm particularly interested in the DJX. If an order came through for a 500 contract spread using near term expiration, would that move the market (forgive me if I sound stupid)? What about 9 months to expiration? I'm just trying to figure out how to best (theoretically...because I don't currently have this problem) handle large order volume from off the floor. Thanks, MYD