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It may not matter much if you are trading SPY options which are .02 wide, but it does with most other options. If you enter a limit order with RH in a less liquid option that is not filled immediately, its going to most likely be routed to an exchange that will pay to add liquidity/charge to...

Fidelity charges .65 a contract for options. Not zero commission

Fidelity's current rate they are paying in their "SPAXX" money market fund is 4.98%. They don't charge $5 a month and you're dealing with Fidelity not Robinhood.

It could just be an error with their platform, not intentional. Many years ago, my execution platform was blocking orders in pennies in a product where it should have been allowed. When I contacted them, they made the change.

Wait, they only allow pennies above 3? Thats even stranger, if they did limit pennies, you would think it would be to only options below 3. You should definitely follow up with them. This really makes no sense. Do they restrict pennies in SPY?

For an option to be quoted in pennies, it must be part of the "Penny Program." This is basically based on overall volume and can change. The OCC lists what stocks are part of the program here, OCC - Penny Program (theocc.com) Even if a stock is not part of this program, options may still...

I don't necessarily agree with this. I this isn't simply out of the money strikes trading nickels. What is different here is how extremely out of the money this trade took place. The strike here was 29% down in 1 day. Also trading were other far out of the money puts at even higher levels...

Interesting, never thought of some type of marking motivation.

As others have mentioned, its generally going to be where the order was filled that would bust a trade. The exchanges will have specific rules on how/why/when a bust will take place. For example, this memo from the CBOE explains and contains links to the rules...

I knew you would be the one to go to. Thanks for checking.

Yes, I just edited my comment. It was marked as "regular"

I believe it was just "regular" as the condition (just checked time and sales). Don't remember anything special. Print was at 3:49:35 ct in the curb session for 11,400 contracts. Sept 22 SPXW 3100 puts

Extremely aggressive paper. He started bidding on the 3700 puts and kept going down in strikes until filled. The 12,000 lot on the 3100 strike was bid too for a few minutes until someone hit it. Mondays 2600 strike was also bid for 12,000. that's 40% down! Really threw the whole skew out for...

Was hoping you would have the answers. You're the connected one, not me.

Doesn't seem possible to me either. Thats why I posted here to see all possibilities.

What was the trade? Options? Futures?

Bob, our firm typically looks down 20% overnight in the SPX. If one of your customers sold a bunch of these, would it have been a problem?

I used it not as an insult, but thinking a "smooth brain" was someone smart. I learned something new today.

For all of you smooth brain folks out there, please explain this to me. Yesterday just after the regular close, the SPX 3100 puts, expiring today, were .05 bid for 12,000 in the curb session. This was from a bidder who kept lowering the strikes he was bidding on until he was finally filled...

PFOF and its discontents | Financial Times (archive.ph)