Should you chase options to get filled?

Discussion in 'Options' started by a529612, Jun 23, 2006.

  1. ktm

    ktm

    I think a lot depends on why you are starting the position. If you are creating some balance or a hedge or the second part of a leg, then you may need to chase it a little bit and pay up to prevent the need for chasing it a lot a few minutes later. In these cases, you may have significant exposure and you really need to get filled. In this case, I may enter mid bid/ask and wait a bit for the price to come to me, then chase it and pay up if it starts to move away.
     
    #11     Jun 24, 2006
  2. KTM gives one example of why you really can't make hard and fast rules on this one. It depends....and no substitute for experience. If you are opening a position and have a good idea of what "you" value the option then no..don't chase it. However there are times you may need to chase for other reasons. "options" are a good word because there are just too many of them to chose from and you need some flexibility to manage them. Not an easy game :)
     
    #12     Jun 24, 2006
  3. pattersb

    pattersb Guest

    Does this mean you will sell anything at anytime for less than the current ask?
     
    #13     Jun 24, 2006
  4. For single option trades, NO, unless there is a lot of wiggle room. For spreads, YES, depending on all variables--usually fill at the natural price and if not you wait or move on.
     
    #14     Jun 26, 2006
  5. no. I chased only a few times in my life, and everytime got burned. So no.
     
    #15     Jun 26, 2006
  6. Hell NO.

    The only thing you chase is women.

    End of story.
     
    #16     Jun 26, 2006