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Doc... anybody... is this the only way to do this kind of trading? Why
don't market orders get filled at the market?
Because, they make a lot of money off you this way. I never, ever, ever
place market orders, never. I watch stocks all day long go from 80, down to
78 next tick, back to 80 next tick, up to 82 next tick. What is the market
on this stock, $75 to $85. Don't think so. Same with options. The market
makers make a ton of money off those who place market orders. Just try and
complain about it and get your money. No Way. The Market WAS at 9/16 when
your order was filled. That is the end of it.
Kohath
----- Original Message -----
From: Dick Crotinger <dangle@xxxxxxx>
To: <realtraders@xxxxxxxxxxxx>
Sent: Thursday, August 12, 1999 3:37 PM
Subject: OPTN: How can they do that?
> I just closed a trade in an equity option, OILHV, at 1515 EST. My
> screen (DTN) showed the BID at 5/8, which had fluctuated at 5/8 - 11/16
most
> of the afternoon. 95 contracts traded so far. I felt the stock was
> correcting and decided to close my long trade in the call option. The
> option suddenly dipped to 9/16 bid five minutes AFTER placing my Dreyfus
> order, which is where I was then filled. Dreyfus fills this kind of trade
> all the time almost immediately (~30 seconds)... this one took five
minutes.
> The option then IMMEDIATELY went back to 5/8 bid. The option during the
> last 15 minutes prior to the close started bidding at 9/16.
>
> I KNOW this is a thinly traded option (948 contracts)(but what is
> "thinly?"). I KNOW that a market order is for he who wants an absolute
> unconditional exit... that's why I use it when I want to pull a trade.
(My
> entries are limits). But this pisses me off. The trade size was 10
> contracts, and I was under the impression that a market order to the bid
or
> ask is GUARANTEED at least a 30-contract fill. Why did this trade go a
> notch lower, to the "screw-em" point? HOW CAN THEY DO THAT?
>
> This is not a big financial deal... he got the teenie and I didn't.
But
> I have to believe that CBOT et al are not happy with the recent several
> years reduction in participation by "the public." Well, it's because of
> this kind of stuff. Most of the time, I'm happy with my 10-second fills
> using the above approach, but once in a while this happens...
>
> Doc... anybody... is this the only way to do this kind of trading? Why
> don't market orders get filled at the market?
>
> Dick Crotinger
>
>
>
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