Trying to calculate the Open with Option Orders, HD $265 Calls.

Discussion in 'Options' started by JesseJamesFinn1, Jul 24, 2020.

  1. I bought 14 HD $265 Calls at $1.5-$2.00 on Wed my son's account and tried to sell at $2.40 but nobody was willing to pay up. HD closed really strong so I carried them over.


    After the Close on Wed, I put in all the orders from $2.80-$3.40. Here is how some got filled with different prices, options do not have a Consolidated Opening do they?
    upload_2020-7-24_3-53-21.png
    time type quant HD Limit Exe.
    upload_2020-7-24_3-52-10.png

    Why did the $2.80 limit get a better price than the $2.90 limit order or they all get filled at $3.20? The orders were inside Citadel's book so why would I get a better price on a lower limit order? Appreciate your help, selling options in the Open is interesting to say the least.
     
  2. FSU

    FSU

    There are 16 option exchanges, so there is no consolidated opening price. The price you are filled at will depend on the opening market at the exchange where your order was routed to, and you may not be protected by NBBO on the opening.

    Instead of putting in an option order prior to the open, I would suggest you wait about a minute after the open.
     
    guru and JesseJamesFinn1 like this.
  3. Thank you, that makes more sense than trying to guess where their going to bully the highest price.
     
  4. Atikon

    Atikon

    I'd add depends on if you think the underlying will move in your favour, IV is high at the open and drops once the opening price is settled, one has to wheigh IV against delta
     
    Last edited: Jul 24, 2020
    JesseJamesFinn1 likes this.