Who is writing 1 or 2 or 3 unit option contracts?

Discussion in 'Options' started by Ayn Rand, Aug 3, 2019.

  1. m22au

    m22au

    I'm finding it a bit difficult to understand your queries.

    I regularly trade 1 or 2 option contracts at a time, and have for many years. I am/was unaware of any moral or legal requirement to trade a larger number of contracts for each trade.

    Regarding your specific example of GS, at a share price of $209.37, a one contract trade represents a stock position on exercise/assignment of over $20,000 - which isn't a small amount of money.
     
    #11     Aug 4, 2019
  2. Bekim

    Bekim

    There are smart spread algorithms that will fill orders 1 at a time rather than a bunch at once.
     
    #12     Aug 4, 2019
  3. Kammo

    Kammo

    I often get fills comprising batches of little fills with Robinhood, but not with other brokers. I trade spreads.
     
    #13     Aug 10, 2019
  4. How do you find your calendars?

    TDAmeritrade has a link that suggests several calendar spreads but I have never traded them.
    Do you follow the suggestions of others or do you find your own?
     
    #14     Aug 11, 2019
  5. ffs1001

    ffs1001

    I have been very actively trading calendars for 2 years - I find my own, using the techniques that I have learnt in this period. Without going into details, I use a variation of the techniques practiced at Steady Options (subscription service).

    I have been successful with these cals on a regular and consistent fashion. However, the drawbacks are (1) high comms (2) not possible to scale up to a 6-figure portfolio (3) very time consuming - not so much of an issue for me as I trade full-time, but if I had a day-job, then I wouldn't be able to do it.
     
    #15     Aug 11, 2019
  6. TommyR

    TommyR

    to check who is buying it sherlock
     
    #16     Aug 11, 2019
  7. ironchef

    ironchef

    My non professional guess is that those (we small mom and pop retails trade against) nowadays are algo driven?
     
    #17     Aug 11, 2019
  8. FSU

    FSU

    There are a number of reasons your 10 lot order may be filled in smaller increments. The most likely would be the pro-rata fill rules at an exchange. For example when your order is routed to an exchange, the DPM may be guaranteed a certain percent of the volume. The rest is split up based on the size quoted by other market makers. So in your example of the 10 lot, the DPM may have gotten the biggest cut, while the rest of the order was split among other MM's.
     
    #18     Aug 11, 2019
  9. ZBZB

    ZBZB

    Take the trial at www.poweropt.com to see if that will help you find more spreads.
     
    #19     Aug 11, 2019
  10. ffs1001

    ffs1001

    Thanks ZBZB. I registered today and had a look, and sadly, there is not much there for me.
     
    #20     Aug 11, 2019