|
PureBytes Links
Trading Reference Links
|
Hello,
As others have said, do not trade any thin markets (particularly options)
with market orders.
Last summer I was long 2 Earthlink puts. I was ready to sell them and take
my profits. The current offer at the time was 14 7/8 and the bid was 14
1/2. So I put in my order and offered my big 2 contracts at 14 3/4. I
thought I'd get hit immediately... wrong. My ordered actually widened the
spread to 14 1/4 by 14 3/4. I stayed the offer for 45 minutes while the
common stock dropped 3 points. They squeezed the bid up to 14 9/16 before
finally hitting my offer. And this was an actively traded stock and in the
money, front month options!
Write this off as a lesson in order placement. A lesson learned today will
save you money tomorrow. Joe Ross in Trading is a Business stresses the
importance of practicing and recording (writing down and tape recording)
your order placement. You need to adapt your orders to the market you are
trading. If not, you are giving up any edge you may believe you have in the
first place.
Good luck,
Howard
>From: Lalaine Espinosa <lalaine28@xxxxxxxxxxx>
>Reply-To: lalaine28@xxxxxxxxxxx
>To: <realtraders@xxxxxxxxxxxxxxx>
>Subject: [RT] Horrible fill
>Date: Sun, 05 Mar 2000 11:20:05 +0900
>
>Hi,
>I would like ask some opinion or advice about the option contract that I
>bought for $100.00 each. Last March 1, I placed an order with my broker
>(a weelknown one) to buy 10 Dec. Put crude oil 1450 at the market.Since
>it was trading at a premium of @1 or $10.00 per contract I expect to buy
>it higher than $10.00 but not more than $20.00.
>The next day my broker told me that I was filled at $100.00 per contract
>so I paid $1000.00 for 10 contracts.Is it possible for the distant
>contract to have this range? If you are a broker and you client place an
>order like this, are you going to buy this high? I'm thinking to
>liquidate these contracts, but I 'm afraid they sell them for $10.00
>again. Any opinion or advice on this matter is highly appreciated. Thank
>you.
>
>Regards,
>lalaine
>
>
>
>
>
>
>
>
______________________________________________________
Get Your Private, Free Email at http://www.hotmail.com
|