How would you have tried to sell 500 Apple Calls above $1.25?

[RabidTrader]

Hypothetically if you had bought over 1000 Calls starting in the $.20s and built up a nice position by the time Apple's Options are $.50, your conviction is Apple will hit $112, how would you unload the rest you sold at $.80-$1.05?

a sloppy trader is trying to sell his remaining 564 Calls by setting up orders from $1.25 to $1.30 using all kinds of exchanges, Nasdaq and NYSE were Citadel's Exchange de Jour while at other times BATS and CBOE were getting hit at the Offer from $.85 x $.88 CBOE was filling my orders.'


How would you unload your contracts once you figured $1.30 was too high? Using 10 Market Orders would not work, any ideas?

 

[RabidTrader]

I have access to the Trades Confirmations and Time of Sales since there are so many Naysayers and Bashers, I know there are great traders who execute larger blocks than me here. How would you sell those Calls, your who I am asking this. Thank you!

 

[rmorse]

Hypothetically if you had bought over 1000 Calls starting in the $.20s and built up a nice position by the time Apple's Options are $.50, your conviction is Apple will hit $112, how would you unload the rest you sold at $.80-$1.05?

a sloppy trader is trying to sell his remaining 564 Calls by setting up orders from $1.25 to $1.30 using all kinds of exchanges, Nasdaq and NYSE were Citadel's Exchange de Jour while at other times BATS and CBOE were getting hit at the Offer from $.85 x $.88 CBOE was filling my orders.'


How would you unload your contracts once you figured $1.30 was too high? Using 10 Market Orders would not work, any ideas?

Apple options are very liquid and 1000 contacts will not move a strike more than a penny in the front three expirations. Just leave limit orders out there at the prices you want to layer them at. If the question is with DMA, what exchange to you choose, I would start with the one with the largest rebate which I think is C2. Keep in mind, that your order will have customer priority, but all things equal, buyers will be routed to the exchange that will cost them the least first. You won't get the first execution and will likely not get filled at that price until that becomes the bid on the street. You have to balance your desire for lower commissions with best execution.

Me, I choose best execution every time. I would look at Amex, CBOE, ISE or PHLX and choose the one where I have the best offer.

I'm not sure if I answered your questions. By the way, the price you paid for the options should not be part of the decision making process. Focus on what price you want to exit.

Bob