Rookie Question of Fills

Discussion in 'Options' started by Scataphagos, Apr 28, 2017.

  1. I was JK. :)
     
    #11     Apr 28, 2017
  2. Now that I have the Bid/Ask columns up, I see lots of fluctuations in the sizes, but little in the way of volume. Do option players cancel lots of orders? Spoofing?
     
    #12     Apr 28, 2017
  3. I never look at bid/ask sizes and get reasonable fills all the time. The thing is I only trade super liquid indexes and ETFs like SPY.
    For individual stocks it's trickier. Sticking with stocks with a minimum price (maybe $20 or $30) and a minimum average daily volume (maybe 1M shares) definitely helps improve your fills.
     
    #13     Apr 28, 2017
  4. Robert Morse

    Robert Morse Sponsor

    You are looking at many option market makers adding their own markets to the NBBO. They can move in and out of that NBBO very often as the stock moves. That is not spoofing.
     
    #14     Apr 28, 2017
  5. OK, thanks. 'Nother question. I see size fluctuation up and down as you say, but no volume as of yet. Does the Bid and Ask sizes reflect the number of contracts at the current stated Bid/Offer and not like the DOM in the ES where Bid/Ask volume is shown for 10 prices above and below. Seems a bit odd to me to see 1000 contracts bid and ask with zero volume. Nobody bid/ask between the posted spread?
     
    #15     Apr 28, 2017
  6. Robert Morse

    Robert Morse Sponsor

    Yes, the Bid and Ask sizes reflect the number of contracts at the current stated Bid/Offer. If it is multiple listed, that total is from different exchanges. ES is a single listed product so the bid/ask is from one exchange. AAPL could be from 15 option exchanges.

    What symbol.
     
    #16     Apr 28, 2017
  7. WFC, Jun 16 50C
     
    #17     Apr 28, 2017
  8. Robert Morse

    Robert Morse Sponsor

    Looks like a bunch of MM all sending out he same markets on many exchanges. Dividend is next week and almost the cost of the put.

    upload_2017-4-28_10-27-4.png
    upload_2017-4-28_10-31-56.png
     
    #18     Apr 28, 2017
  9. Can you explain the iceberg order?

    I made a mistake a while back that was kind interesting. I had an open limit order that I was changing to a market to get a fill...or at least thought I was. I actually placed the same order twice (1 limit, 1 market), and both filled approximately simultaneously (both during the same second). Bit the limit filled .01 above the limit (credit spread), and the market a penny above that. Both inside the bxa spread, but the market got a better price.
     
    #19     Apr 28, 2017
  10. Robert Morse

    Robert Morse Sponsor

    Buy 100 WFC, Jun 16 50 Calls, show 5.

    The public will only see 5.
     
    #20     Apr 28, 2017
    ironchef likes this.