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Re: OPTIONS Bid+Ask => Futures option MOC order?


  • To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
  • Subject: Re: OPTIONS Bid+Ask => Futures option MOC order?
  • From: FAIRBANkkk <FAIRBANkkkkkkkkkkk>
  • Date: Sat, 20 Dec 1997 19:42:06 -0800 (PST)

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I can only speak for the futures pits in NY.  Unlike the options on equities
where there are exchange rules for governing how wide the spread can be
between the bid and ask, options on futures have no rules.  If the day was
quiet in cocoa you will get a reasonable MOC fill.  On the other hand if it
was wild (again) in coffee then you are a sucker to put in an MOC,
particularly to open a position, because you will be ...let's say to be
diplomatic ... not treated to a tight bid-ask spread.  If it is a small order
then it will  not affect surrounding option prices, and your option will just
settle "out-of-line" at your price.  A  larger order will start affecting
option prices around it.