|
PureBytes Links
Trading Reference Links
|
So what kind of order do all you folks use? IF it is a limit order, away
from the market, you probably will get filled at the wide bid/ask spread
anyway. The only way to really avoid that, I've often found, is to get a
bid/ask when the market is quiet and then try getting a price towards
the middle of that range on an immediate or FOK (fill or kill) basis.
The great prob I've found with using options for stops is just as what
everybody is alluding to: The spreads are much wider than the futures.
And remember, for a proper hedge, it needs to be delta weighted, so you
need to buy/sell more options contracts than futures, making your
brokerage higher too.
Steve Poser
--
Steven W. Poser, President
Poser Global Market Strategies Inc.
http://www.poserglobal.com
BrentinUtahsDixie wrote:
>
> Yikes! I'm with the DR about using MOC orders you're going to get a fill at
> "their" greatest pleasure. Whether that is better or worse than an ATM order
> during the session I'm not sure but either way you're playing into "their"
> hands. I've heard tales of actual jubilance as an ATM option order comes
> into the pit and is sort of tossed around like a basketball would be in a
> ball game. The only time I've used the order is when I'm trying to rescue
> some of the value of an expiring option or in a fast market.
>
> Brent
> -----Original Message-----
> From: Mervin Yeung <tinyeung@xxxxxxxx>
> To: Real Traders <realtraders@xxxxxxxxxxxx>
> Date: Monday, June 21, 1999 4:18 PM
> Subject: OPTN: Market on Close
>
> >Hi RTs,
> >
> >I am trying to use options to replace stops. I worry about the
> >liquidity. I know the close is usually the most liquid of the day. I
> >wonder if I use Market on Close Order to buy calls or puts right at the
> >close, is it a good way?
> >
> >Thanks in advance!
> >
> >Mervin
> >
Email: swp@xxxxxxxxxxxxxxx
|