Discussion in 'Options' started by 0008, May 16, 2005.
Do the pro options traders use limit order for entry? Is this practical?
Since the game of options based on volatility and volatility can be dramically different at small price changes. I would guess most serious traders use limit orders.
Last year we traded over 18,000,000 contracts in 320,000 trades .... all of them were limit orders. I hope it answers your question.
If you don't mind me asking, where do you put limits? I.e. at the bid for buy/ask for sell, mid-point....?
I cannot remember the last time I every put in a market order. I alwsays do limit orders and where I place it depends on the market.
For SPX and OEX/XEO I usually start right in the middle and shave $0.5 to $0.10 as needed or more in some cases. For spreads of $0.05/$0.10 I usually go right at the appropriate bid or ask but will occasionally try and sell at the ask and buy at the bid
Are spreads of $0.05 the minimum?
Yep, .05 is the minumum.
Separate names with a comma.