From what I've seen on news stocks that have a delayed opening due to an imbalance, these work only about 50% of the time. So a bit less than a stock with no news.
Logic would say that it should work more of the time, since in their infinite wisdom, the specialists, company, and NYSE "officials" have taken time to discuss where the stock should open based on the size of the imbalance. And the specialist probably is participating in the opening print.
During the delay, the specialist is waiting for all the orders to come in which ever way the imbalance is going.
Seems like when they don't work, the specialist either didn't open the stock high or low enough, or he must be receiving MORE large orders in the same direction as the imbalance, after the opening price has a chance to settle.
I usually will cancel my OPG orders on these, and watch the stock after the open, to see if it is going to work or not. Usually these stocks are the really strong or weak stocks for the day.
Good trading...
Logic would say that it should work more of the time, since in their infinite wisdom, the specialists, company, and NYSE "officials" have taken time to discuss where the stock should open based on the size of the imbalance. And the specialist probably is participating in the opening print.
During the delay, the specialist is waiting for all the orders to come in which ever way the imbalance is going.
Seems like when they don't work, the specialist either didn't open the stock high or low enough, or he must be receiving MORE large orders in the same direction as the imbalance, after the opening price has a chance to settle.
I usually will cancel my OPG orders on these, and watch the stock after the open, to see if it is going to work or not. Usually these stocks are the really strong or weak stocks for the day.
Good trading...
