Am I fooling the algo's?

I think @IAS_LLC got it. Sounds like someone was accumulating contracts in that price range and your order participated in that, getting some avg price fill for the whole block(guessing here). Would be interesting to know condition codes for the trades. Maybe you can post specifics and someone with access can check.
 
Amun Ra said:
Maybe someone can shed light on this as to what is happening because it happens with a good 25%-40% of the way I do limit orders.

Today for instance...I'm trying to sell 10 options of KO. Bid is $5.30, ask is $5.45. I put a limit order to sell for $5.40 No execution as several minutes go by. Bid is still $5.30. I change my bid to $5.35 and it instantly executed for $5.41. The bid/ask is now $5.30/$5.50. This happens so often, that I get a better price when lowering my bid.

What is the logic in the algo's doing this?
More...

Yes it's entirely probable (100s of conditions out there), just be careful in the future because you may get filled on the bid next time ;)
 
Your post is very confusing..
Market is 5.30 bid at 5.45..You offer at 5.40..

No fill,and then you change your bid to 5.35???? What bid?? You were offering at 5.40...corrrect??

So you are making 2 sided markets??

Then you get filled above your offer??

Then you say. You get better sales by lowering your bid??

Perhaps you are mixing up the terms bid and offer??





Amun Ra said:
Today for instance...I'm trying to sell 10 options of KO. Bid is $5.30, ask is $5.45. I put a limit order to sell for $5.40 No execution as several minutes go by. Bid is still $5.30. I change my bid to $5.35 and it instantly executed for $5.41. The bid/ask is now $5.30/$5.50. This happens so often, that I get a better price when lowering my bid.

?
More...
 
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taowave said:
Your post is very confusing..
Market is 5.30 bid at 5.45..You offer at 5.40..

No fill,and then you change your bid to 5.35???? What bid?? You were offering at 5.40...corrrect??

So you are making 2 sided markets??

Then you get filled above your offer??

Then you say. You get better sales by lowering your bid??

Perhaps you are mixing up the terms bid and offer??
More...
It actually happened to me a few times too. I don't understand it either but someone mentioned auction, maybe that was the reason?
 
It's the "get better sales by lowering your bid" that is confusing and doesntcmake sense.Hes a seller..Offering at 5.40..Thats clear..

He never mentioned he was bidding,so lowering his bid is confusing.

I think he meant lower his offer,unless he is making 2 sided markets and didnt mentioning it.Regardless,lowering your bid is not going to help you get a sale off..
 
taowave said:
Your post is very confusing..
Market is 5.30 bid at 5.45..You offer at 5.40..

No fill,and then you change your bid to 5.35???? What bid?? You were offering at 5.40...corrrect??

So you are making 2 sided markets??

Then you get filled above your offer??

Then you say. You get better sales by lowering your bid??

Perhaps you are mixing up the terms bid and offer??
More...

Sorry, I meant I changed my ask from 5.40 to 5.35, not bid.
 
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