IPO First Trading Day Question for the Expierenced Traders Here

[Shaun]

I assume he wants to take advantage of the "wild gyrations" of an IPO - fundamentals has nothing to do with it. Enter early and exit at the end of the day.

Very observant. Yes, my goal is to take advantage of it by entering as early as possible. I have a method of placing my exits. Emphasis on the S in exits

 

[d08]

Looks like there would just be an opening auction (T&S reports O/X flags on the opening trade just like a regular open), in which case market OPG orders aren't a terrible idea.

 

[Shaun]

Looks like there would just be an opening auction (T&S reports O/X flags on the opening trade just like a regular open), in which case market OPG orders aren't a terrible idea.

I think you may have solved my issue

So when the IPOs symbol appears with no chart data, I can place this type of order, and then at whatever time the IPO opens, my order will be executed?

Does this sounds correct to you? I will surely test it with some IPOs I do not want at low shares.

 

[d08]

Sounds right but the only way to make sure is to ask your broker and/or test it out.

 

[Swan Noir]

Very observant. Yes, my goal is to take advantage of it by entering as early as possible. I have a method of placing my exits. Emphasis on the S in exits

You do understand that most (and frequently all) of the price increase over the IPO price is built into the open? Good luck but using a market order may well put you in the stock at a price that is at or near the high of the day.

 

[OTM-Options]

How does a OPG order differ from a Market Order or Limit Order?

Market orders and limit orders can be entered while the market is closed, or in the OP's case for an IPO that isn't trading yet - the orders are then filled once the market opens.

You do understand that most (and frequently all) of the price increase over the IPO price is built into the open? Good luck but using a market order may well put you in the stock at a price that is at or near the high of the day.

That's bullshit.

 

[d08]

You do understand that most (and frequently all) of the price increase over the IPO price is built into the open? Good luck but using a market order may well put you in the stock at a price that is at or near the high of the day.

Do you have data to prove this? I've witnessed several IPOs that exploded 20% higher in the opening day.

 

[d08]

How does a OPG order differ from a Market Order or Limit Order?

Some brokers convert early market orders before the open into OPG but not all. An OPG order executes at the opening auction price while a regular market order will most likely execute at a worse price due to the wide spread at 9:30:00.

 

[rmorse]

Some brokers convert early market orders before the open into OPG but not all. An OPG order executes at the opening auction price while a regular market order will most likely execute at a worse price due to the wide spread at 9:30:00.

An IPO can only open at the Primary exchange. There is only one opening price. Send your order to the primary and it does not matter as long as you get in before the pairing off is set.

 

[d08]

An IPO can only open at the Primary exchange. There is only one opening price. Send your order to the primary and it does not matter as long as you get in before the pairing off is set.

Well, if the broker doesn't set these orders as OPG, they will just execute in continuous trading on any venue.