In layman's terms...Using BATS??

C

Cabin111

Trying to do a covered call on YUM...Boring I know. No need to get into the meat of the company.

I go to Fidelity where it gives me the choice of about 5-6 brokers or Fidelity can direct themselves...PFOF. I usually try for CBOE first...Manual trading. If it is later in the day (haven't gotten a fill), I will switch to Fidelity for "good till cancelled"...60 days. These are small generated income type of calls...Very boring stuff.

When I put my trade with CBOE, after about 10 minutes, I will still not see the other exchanges drop even close to my price. Example I will be at $2.95 and the other exchanges will stay at $3.10 or $3.20.

BATS was bought out by CBOE about 6 years ago.

Could someone explain the advantages and disadvantages of using BATS.

Does BATS talk to CBOE, or is that a violation if they do??

Please make it simple...I think there are higher charges for using BATS. Thanks...

PS Ten minutes ago I did get a fill at $2.85...Back to bid $2.65-$3.10 ask
 
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qlai said:
BATS is exchange for equities. I don’t understand why you care. Just let Fidelity route it for the equity leg.
More...

They do options, but it seems like it's not that big of a demand.

Fidelity will NOT send my offer to a market (options). I've talked to them...They said if they matched, it would get filled. They give the spiel of price improvement. But, it does not show up on any market (price discovery). Schwab doesn't even offer routing (unless I want premium)...Take it or leave it.
 
Ok, so CBOE BZX exchange just has a different matching logic. They don't talk to each other. You shouldn't care about any of that really. Your order will get filled as the stock moves in the right direction (for the Market Maker of course).

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