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How can I get paid with best price?
>I can't bid nor offer,,,,since I'm not on the floor. I can't place just a
limit order since it might not get filled.
>I wonder how any experienced option traders buy or sell.
>Any comments are welcomed....
Kevin,
1. Try to sell at the median of the bid/ask spread.
Example: Market at 18 bid: 16 Ask 22 Sell 'em at 19 limit. Usually,
you'll get filled. Also, call your desk, and ask for a current
bid/ask spread. If the options are thin, the floor will have to "make a
market" when your floor broker asks for the bid/ask. Gives you
a feel for what the floor *thinks* the prices should be.
On not being filled on the "limit"
A hard and fast rule I follow though is not to chase a market. If
I can't get my price (especially if I'm a seller), I walk away.
2. Find a sister market with deeper liquidity. Since you were
looking at HO, you could hop over to Crude Oil and check out
the situation there.
3. Look for more buyers just before lunch time. (CST and EST)
or try to get you price on the Open.
Walt Downs
CIS Trading
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