IB Pricing Question

[atticus]

Forum moderation implies some experience with the topic at hand, correct? You're serious with this thread?

 

[oraclewizard77]

On my yahoo quotes during market orders, I get real time quotes right under the symbol, after hours, it now says after hour quotes.

However, for me even better it tells me if the quote on IB can be trusted or not. If the limit price on IB is close to the price on yahoo, and I want to take the trade at this limit, I will not manually change the price of the limit order. But if yahoo shows a big discrepancy, then I will change the limit price in IB so I don't get ripped off.

Quote from stoic:

Disclaimer on Yahoo. duh

Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Quotes and other information supplied by independent providers identified on the Yahoo! Finance page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.

 

[ForexForex]

Quote from stoic:

Disclaimer on Yahoo. duh.......................

Even with the 15 minute delay Yahoo quotes are good enough to base your trade on - right up till you are ready to submit. Just use the broker for the final quote.

 

[oraclewizard77]

I am not a mod of the options forum, nor do I frequently trade options, so no I don't claim to be an expert in trading options.

Quote from atticus:

Forum moderation implies some experience with the topic at hand, correct? You're serious with this thread?

 

[atticus]

Quote from ForexForex:

Even with the 15 minute delay Yahoo quotes are good enough to base your trade on - right up till you are ready to submit. Just use the broker for the final quote.

So GE drops $0.20 in three minutes and yahoo's 15m delayed quotes are "good enough" to make a market in the options? Penny bid at three hundred!

 

[sjfan]

What you saw was pretty standard for illiquid markets. The bid/ask is wide because the MM has to buy/sell at those levels. If you narrow the market by putting an offer in the middle, you may get lifted, your level clears, and the market returns to the original bid/offer.

Think about it this way. You had made a choice: you can either sell immediately at .88 OR show an offer at 1 but facing execution uncertaintly (maybe the .88 disappears and the market becomes .6/1 when you 1 gets posted). You made choice #2. It worked out for you, but not always.

Anyway, I can't seriously believe this question is for real. Think I'm feeding the troll here.

Quote from oraclewizard77:

I put it in at $ 1 GTC order since I saw that at least 1 contract got traded from yahoo finance data at $ 1.10 and current price of the stock was close to its lows of the day when I put in the order. I need at least $ 1 as a safety net, the GTC limit was fine for even if I had to wait till Tue to get filled.

I disagree with any that think I could have gotten $ 1 with a market order or leaving the price alone as a limit order for $ .88. I would have instead been filled at $ .88 and lost $ .12. Remember I am selling a naked put and want the highest price possible.

 

[atticus]

Quote from oraclewizard77:

I am not a mod of the options forum, nor do I frequently trade options, so no I don't claim to be an expert in trading options.

The implication that the $0.88 quote was NBBO-offer was ridiculous. Show a little restraint before defaming a firm simply because you haven't a clue what you're doing.

 

[oraclewizard77]

No, it was a real question on why it happens since I usually trade futures and even on market orders, there is very little slippage, and bid / ask is normally not larger than 1 tick. Was the title of the thread a little outrageous? Yes, I don't really believe they are ripping me off, but I take creative license to generate responses to my thread.

Quote from sjfan:

What you saw was pretty standard for illiquid markets. The bid/ask is wide because the MM has to buy/sell at those levels. If you narrow the market by putting an offer in the middle, you may get lifted, your level clears, and the market returns to the original bid/offer.

Think about it this way. You had made a choice: you can either sell immediately at .88 OR show an offer at 1 but facing execution uncertaintly (maybe the .88 disappears and the market becomes .6/1 when you 1 gets posted). You made choice #2. It worked out for you, but not always.

Anyway, I can't seriously believe this question is for real. Think I'm feeding the troll here.

 

[atticus]

I must be missing something... did you notice the TWS NBBO (bid-ask on the option) on the order line?

 

[ForexForex]

Quote from atticus:

So GE drops $0.20 in three minutes and yahoo's 15m delayed quotes are "good enough" to make a market in the options? Penny bid at three hundred!

Yes ..... Keep in mind that the option quotes are delayed 15 minutes, but they have real-time stock quotes. It's easy to figure out were the option prices are heading.