Routing Option Orders

Discussion in 'Order Execution' started by One, Sep 7, 2002.

  1. One


    I am interested in how others determine how to route options (on equities and indices) orders that are NOT marketable, that is for orders that can not be executed immediately, e.g., selling on the offer, between the best bid and offer, or placing a limit order higher than the current market. Does anyone use the OCC's volume statistics to determine which exchange is most active for the series they are buying or selling?


  2. Use ISE if you want a chance of getting filled.
  3. One


    Triple A,
    I have had good luck with ISE as well, though I wondered if others ever used CBOE for example when its volume for the series is higher, or if they prefer one exchange over another for larger size trades. Have you ever split blocks amoung exchanges to judge their effectiveness?


  4. Not that simple ...
  5. nitro



  6. Pabst


    Metooxx is the expert, but I think he'll agree with me. For QQQ the ISE is king. There is so much retail flow in the Q's that the chances of getting an astounding fill are ever present. For equities though, the CBOE and dare I say it, Philly offer better liquidity. At the CBOE you always have the chance that your trade is the missing piece of the puzzle for a MM who has a position in the stock your trading. Maybe he really needs an inside price in that particular strike to make something else a "do". Just isn't always that kind of situation on the ISE.

    P.S. Never trade the AMEX unless it's the only way out. And if it is, figure by the time you get there it probably isn't.
  7. I agree...
  8. Pabst


    me too xx
  9. hehe

    Such a cool Alias.... metoox.. is there a story behind this one?