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

[earth_imperator]

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.

How is that made possible?
Isn't it illegal/unlawful/corrupt by violating NBBO rules?

 

[newwurldmn]

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

my experience. You get filled immediately or not at all. If it takes a while it’s because delta has moved against you.

 

[cesfx]

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)

Misterkel suggestion was to start buying from the bid, moving toward mid to get a better fill than starting a mid and moving toward market (ask for buy), as I think you are suggesting.

 

[murray t turtle]

Hi guys, I'm interested in trading long puts and calls.
I'm only trading high volume options contracts (typically for SPY or QQQ).
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

%%
NOT long @ all in a bear market with calls\generally speaking.
MAY never get filled , but that could be a blessing in disguise\ becase the old floor traders note ''no such thing as a cheap option''
Certain exceptions apply\some execs get stock options dirt cheap [not on spy or qqq] + Mr H Hunt got some cheap oil options , but that was before oil was used much in autos..........................................................................

 

[ajacobson]

"How is that made possible?
Isn't it illegal/unlawful/corrupt by violating NBBO rules?"

Not violating the NBBO - just more size at the NBBO. You should chat with your broker and it might help you craft your order(s). Then again, they may not be a participant. Talk to them. Preferenced orders have been around for about a decade.

 

[stochastix]

Yes, I too made this experience.
But one wonders how this can be... A corrupt system, isn't it?

I wouldn't call it corrupt . It's just some strategic thing and the wide spreads are due to only recently a jointly Calibrating model becoming available and still most institutions and people don't use it

 

[stochastix]

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)

i knew what he meant

 

[stochastix]

I wouldn't call it corrupt . It's just some strategic thing and the wide spreads are due to only recently a jointly Calibrating model becoming available and still most institutions and people don't use it

Risk and expectstion is quite difficult to price actually its no surprise the spreads are wide and dealers respond to quotes just like anyone else in their own way with whatever model they have

 

[misterkel]

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)

Dude, the OP was talking about longing options - so, start closer to bid. I've hit near the bid plenty of times. No reason to start at center. It's easy enough to adjust closer.

 

[earth_imperator]

Dude, the OP was talking about longing options - so, start closer to bid. I've hit near the bid plenty of times. No reason to start at center. It's easy enough to adjust closer.

Ok, understood, you are even more conservative than I am, that's ok, man!