|
PureBytes Links
Trading Reference Links
|
RealTraders:
Last week on Thursday I wanted to go long the S&P's but to mitigate the
effect of volatility and downside risk I entered with a bull spread in the
July calls rather than take an outright futures position. With the
underlying at around 890 I bought an S&P 910 call and sold a 940 for a debit
of about 8.30. Delta on the position was around +25 meaning it would move at
about one quarter of the speed of the future. Late in the day after a nice
move up I decided to not be greedy but to go ahead and get out with my profit
I had then of roughly $1000. So I entered an order with my broker to sell
the spread at net credit of 10.40. The market continued to move up the
remainder of the day and the spread closed at over 12.30. After the close my
broker told me "unable" on the fill.
I couldn't figure why it didn't fill but since the market was acting quite
bullish I figured it was a mistake somewhere but as the position had gained
in value I wasn't going to cause too many waves about it.
So Friday the market again surges up and I again place my order to exit late
in the day at around 13.00 (about a $2500 profit). Again the market surges
well above my exit point and the spread closes at about 15.00. And agiain
the result is "unable".
What's going on here? Volume on each option is not that thin (200 - 400
contracts per day on each option) and the market had moved well beyond what I
needed to get filled. Any Ideas?
Rich Parrott
|