Don's openings Part 3

Originally posted by Mark Hansen
how would you handle this stock today?

DIS was trading down something like 2% in the Pre-Market -
so would you

1] just avoid an Opening Only order on this stock?
2] put in a normal OPG?
3] make some adjustments,
because it "appears" it may open below it's normal fair value
(maybe there's some negative news, like a down-grade)?



thanks
Mark
:cool:
More...

All you do is simply adjust your purchase price to within the number where the "pre opening indication" is being shown....not where "pre market activity" is...pre markets are generally useless.

Even if you use the normal OPG, then you should have no problems.

**note** just for terminology....please don't confuse "opening only' with "market on open" (which refers to a "market order" placed at the opening which is always filled.

Don
 
Too bad, since we had students here today.....but at least my brother made a few hundred in IBM on the opening.

Tomorrow is triple witch day...so we should have some nice trades on the opening....

Back to you!!

Don
 
sorry for asking a question that has been answered so many times, but all of the answers vary. on the envelope - say a conservative one at 0.80% - this means add 0.80% to the fair value price and subtract 0.80% from the fair value price, correct?????? not 0.40% on both sides?

the reason i'm asking is that i got one fill today (.80% above and below), and none yesterday.

thank you
 
you should put in at least a limit order on the opening at a price you would be happy to close your position just in case the specialist opens the stock at one of those prices that Don and his minions want to get in...
 
Don, I'm little bit confused when you said that there's a difference between "opening only" and "market on open" . Are you guaranteed to get the open price if you do a "mrk on open" ? If you do, then what's the difference since "opening only" also gives you the open price.
I use Redi+ and there's a OPG which I assume is for "opening only" , right???
 
Originally posted by mrktrend
Don, I'm little bit confused when you said that there's a difference between "opening only" and "market on open" . Are you guaranteed to get the open price if you do a "mrk on open" ? If you do, then what's the difference since "opening only" also gives you the open price.
I use Redi+ and there's a OPG which I assume is for "opening only" , right???
More...

OK..."market on open", either a buy or sell will give you the opening price. What if you put in a buy and a sell marked that way....you would actually "trade with yourself" at the opening price.

We put in limit orders, say a buy at 31 and a sell at 32....then if the stock opens at 30 or 29 or whatever we buy it...and if it opens above 31 we sell it...and we are on the same side as the Specialist...since he cannot "add to" an imbalance...he can only "accomodate" by trading on the other side.

Hope this helps...

Don
 
Originally posted by dafugginman
sorry for asking a question that has been answered so many times, but all of the answers vary. on the envelope - say a conservative one at 0.80% - this means add 0.80% to the fair value price and subtract 0.80% from the fair value price, correct?????? not 0.40% on both sides?

the reason i'm asking is that i got one fill today (.80% above and below), and none yesterday.

thank you
More...

Yes, .80 envelope would mean .80 cents over on a $100 stock, and .80 cents under...for a "spread" of $1.60. Obviously .40 cents on a $50 stock etc.

Don
 
Originally posted by Don Bright


OK..."market on open", either a buy or sell will give you the opening price.
............................................................................
he can only "accomodate" by trading on the other side.

Hope this helps...

Don
More...

Thank, Don. That helped.
I've been trying the OO on the paper for the past two weeks and it seemed to be working so I started with 100 shares in real. However, I'm not getting filled at where I should've gotten filled at least in my opinion. For example I put in five orders today and one of them (everyone's favorite) GE

Closed @ 30.35 yesterday

my entries:
B GE 100 LIMIT 30.15 OPG
SS GE 100 LIMIT 30.46 OPG

GE opened @ 30.25 today and as soon as it opened my orders were cancelled right away. Same for all my other orders except one I got filled on the short side since that one opened higher than the previous close and a penny above my SS price.

I could understand that my GE short got cancelled since it opened lower so the downtick rule but I don't get the buy side. Shouldn't
my buy order be triggered and filled me at the open price??? Am I missing something here???:confused:
 
"Closed @ 30.35 yesterday

my entries:
B GE 100 LIMIT 30.15 OPG
SS GE 100 LIMIT 30.46 OPG

GE opened @ 30.25 today and as soon as it opened my orders were cancelled right away. Same for all my other orders except one I got filled on the short side since that one opened higher than the previous close and a penny above my SS price"

well ge opened at 30.25 your order was for 30.15.how do you figure you should have filled.to be filled ge would have had to open 30.15 or less.
 
Originally posted by Mark Hansen
how would you handle this stock today?

DIS was trading down something like 2% in the Pre-Market -
so would you

1] just avoid an Opening Only order on this stock?
2] put in a normal OPG?
3] make some adjustments,
because it "appears" it may open below it's normal fair value
(maybe there's some negative news, like a down-grade)?



thanks
Mark
:cool:
More...

I remove all stocks that have a news event, like earnings, upgrades, sector news. I think the openings still work fine for them, it's just that when they don't, the damage can be significant.
 
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