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If you look at most of the B/A spreads in popular stock options like INTC,
ORCL, MSFT, etc you'll see spreads that are usually around 1/2 point! In
other words B= 5 1/4 A = 5 3/4. That means on say a 10 lot you pay $500
bucks slippage! That's absurd. Far be it from me to whine about slippage
except when I know that sometimes, with the right broker I guess, you can
execute your order between tbe B/A. With spreads like this there's plenty
of room.
With my old broker I could routinely split the b/a. Their rates were decent
and service very good. I swtiched to a broker that had a better online
platform with similar rates however but I cannot seem to get filled in
between the b/a like I could at my old broker. I end up pyaing the 1/2
point.
You wouldn't think that introducing brokers really matter in options since
they're all routed through the same guy in the options pit who is making the
market. Is it possible that with some brokers you get better fills on stock
options than others or is it pretty much set regardless of the IB you use.
Brian.
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