How long does it take for options orders to get filled?

T

trendisyourfriend

Hi guys, I'm interested in trading long puts and calls.

I'm only trading high volume options contracts (typically for SPY or QQQ). Some of these contracts have a volume figure of over 5,000 contracts a day.

My question to you: if I place a trade at 9:31am EST using a limit order for 70 contracts, how quickly will those orders get filled (typically)? Do you have to wait 20 minutes? Or do they get filled pretty quickly?

How often do market makers step in and help facilitate the trade?

Thanks
 
trendisyourfriend said:
interested in trading long puts and calls
only trading high volume options contracts (typically for SPY or QQQ)

if I place a trade at 9:31am EST using a limit order for 70 contracts, how quickly will those orders get filled
More...

Basic long puts and calls...that's good, I like a simple plan. High volume, that's also good...don't dabble in smaller and weird stuff.

70 contracts is not that large. You should be able to get filled practically instantaneously. Assuming your buy limit price is not really out of the range.
But the better answer for you....is to try it, instead of asking this question here.
Experience and observation, firsthand, is the best teacher. Instead of listening to someone else's advice, or so-called advice,
 
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trendisyourfriend said:
Hi guys, I'm interested in trading long puts and calls.

I'm only trading high volume options contracts (typically for SPY or QQQ). Some of these contracts have a volume figure of over 5,000 contracts a day.

My question to you: if I place a trade at 9:31am EST using a limit order for 70 contracts, how quickly will those orders get filled (typically)? Do you have to wait 20 minutes? Or do they get filled pretty quickly?

How often do market makers step in and help facilitate the trade?

Thanks
More...

If you want your orders filled quickly, the easiest way is to match the asked price. So, if bid is $1.00 and ask is $1.10, pay the $1.10. The biggest orders lined up is on the bid and ask prices. If you have a large size order, you want your order filled. Saving that extra $5 per contract or $5 x 70 contracts, $350 might not be worth it if you miss getting your order filled and the option moves in your favor by a great deal. Then, you end up chasing that option to just get in at much higher prices.
 
MacBookProHo said:
Basic long puts and calls...that's good, I like a simple plan. High volume, that's also good...don't dabble in smaller and weird stuff.

70 contracts is not that large. You should be able to get filled practically instantaneously. Assuming your buy limit price is not really out of the range.
But the better answer for you....is to try it, instead of asking this question here.
Experience and observation, firsthand, is the best teacher. Instead of listening to someone else's advice, or so-called advice,
More...

Thanks for the reply MacBookProHo. I was paper trading the August 19th 400 call for SPY earlier this morning. The price when I checked was 7.05. The Bid was 7.01 and the Ask was 7.06.

Is it ok to put a Limit order in for 7.05 (70 contracts)?

Thanks
 
trendisyourfriend said:
Hi guys, I'm interested in trading long puts and calls.

I'm only trading high volume options contracts (typically for SPY or QQQ). Some of these contracts have a volume figure of over 5,000 contracts a day.

My question to you: if I place a trade at 9:31am EST using a limit order for 70 contracts, how quickly will those orders get filled (typically)? Do you have to wait 20 minutes? Or do they get filled pretty quickly?

How often do market makers step in and help facilitate the trade?

Thanks
More...

Uh - what? Where are you in the B/A spread? If you buy at the ask, instantaneous. If you put in at the bid, 80% of the time it'll fill in 1-2 minutes, 20% the price will run the other way and you won't get a fill.
If you put in below the bid by much you could wait for a long time.


70@7.05?
Dude, that's a lot of money for OTM calls. You want to pitch 49k at this trade?
 
misterkel said:
Uh - what? Where are you in the B/A spread? If you buy at the ask, instantaneous. If you put in at the bid, 80% of the time it'll fill in 1-2 minutes, 20% the price will run the other way and you won't get a fill.
If you put in below the bid by much you could wait for a long time.


70@7.05?
Dude, that's a lot of money for OTM calls. You want to pitch 49k at this trade?
More...
Sometimes on options with wide spreads (vix for instance) a limit at the midpoint will often also fill instantly and give one a sense of regret of not putting it a little further inside
 
stochastix said:
Sometimes on options with wide spreads (vix for instance) a limit at the midpoint will often also fill instantly and give one a sense of regret of not putting it a little further inside
More...
Yes, I too made this experience.
But one wonders how this can be... A corrupt system, isn't it?
 
misterkel said:
For sure. Always start close to the bid and ooch it up to the mid-point every couple minutes.
More...
Nope, the other way around: start in the middle and go stepwise down to the Bid... (this is when shorting, else go from middle up to the Ask for opening a long position)
 
For SPY and QQQQ there is a ton of preferenced liquidity. Ask your broker if they're a participant and what is typical size. It won't be a hard and fast number under all market conditions.
 
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