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LHonigAtl@xxxxxxx wrote:
>
> This is a great point, the one about quote screens. I have Signal, and gosh
> it's as if the screen gives me some quote from sometime in the past but not
> necessarily any day within the last century. This applies to stocks,
Man-o-Manichewitz, is this the truth or what? I have it from Signal people
that their feed may run several minutes behind the market. It's a widely
known fact that their data feed is inadequate to handle all the ticks and
they use "filtering" to determine which ticks to eliminate during busy times.
> commodities and currencies, on all of which I trade options. I have come to
> rely very heavily on my broker to give me the current bid and ask. Often
> they have to "call the floor" to get the qouotes. Even then, as an earlier
I've found it useful to chart options prices on a tick chart and correlate prices
with price of the actual before deciding on my price.
> e-mail reply on the subject made clear (more eloquently and specifically than
> I can), it really, really pays to put in a "limit" (consider the current ask
> as your limit - my limits usually get hit, which smells bad ... ).
I don't think it's as bad as it smells. I have to say that other than getting
nicked every now and then, I often get filled at very good prices. Sometimes
I'm shocked to find I've gotten the best or one tick off the best price. And
I can't complain when I go inside the B/A and the market comes to me.
> You could
> ask, Then why have the options quotes on your screen at all? Well, I do they
> the screen is pretty good for highly traded options, such as index options on
> the OEX, or nearby options on the big-cap stocks. It's a pretty good
> tracking-and-memory device, too, for me.
>
> Good luclk.
>
> Larry
At times I do get the feeling the insiders will leave the B/A rather wide
should someone decide they're going to go with a market order. I have to imagine
that they get enough takers and besides, it doesn't cost them anything to ask
for better prices from the public. No rule says they have to be competitive.
OEX and equity quotes seem to be much more reliable than quotes on futures options.
I basically ignore the B/A for FO and just bid my price based on recent option price
action. If it's not active enough to give me enough data to extrapolate based
on underlying price action, I generally leave it alone.
Which brings me to a question:
It seems SP options are quite thin. Any comments from the group?
Phil
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