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



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FAIRBANKS3 wrote:
> 
> 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.


Does it make sense then to always place an order somewhere in between
the bid/ask for a small order , say 10 contracts. But then, how many
times will it be filled ? How does it depend on what the underline is
doing? I am trying to track where the last order was placed in relation
to the current bid/ask and match that with the underline. Another words,
if the underline in doing a peak will the Call/Put shift from one side
of the spread to the other in oposite directions?. I have been trying to
track this in the last two weeks and that is what seems to be happening.
What I don't understand are large orders outside the bid/ask

Marcelo