IPO First Trading Day Question for the Expierenced Traders Here

[Shaun]

Hello all,

There are a few IPOs that I want to pickup on the first trading day right at the open (Yes, the first trading day. I am not asking about the initial offering price).

This morning, Oct 1, I decided to wake up for the 9:30am open to see how IPOs could potentially react in the mornings. I was dumbfounded to see that the IPOs for today: EDGE, MIRN, PFGC, and SGRY did not hit the market at 9:30am. Not only that, they opened at different times throughout the morning.

My questions are:

1) Are the times that the IPO hits the market ever a known time? How does it work?

2) Is there a way to place a market buy order such that when it does open, my broker will have bought shares for me? This way I do not need to sit in front of the computer for 3 hours, waiting for my desired IPO to hit the market. I figure the Symbol is available the morning of, maybe I can place a market buy when the symbol is available?

 

[rmorse]

Hello all,

There are a few IPOs that I want to pickup on the first trading day right at the open (Yes, the first trading day. I am not asking about the initial offering price).

This morning, Oct 1, I decided to wake up for the 9:30am open to see how IPOs could potentially react in the mornings. I was dumbfounded to see that the IPOs for today: EDGE, MIRN, PFGC, and SGRY did not hit the market at 9:30am. Not only that, they opened at different times throughout the morning.

My questions are:

1) Are the times that the IPO hits the market ever a known time? How does it work?

2) Is there a way to place a market buy order such that when it does open, my broker will have bought shares for me? This way I do not need to sit in front of the computer for 3 hours, waiting for my desired IPO to hit the market. I figure the Symbol is available the morning of, maybe I can place a market buy when the symbol is available?

1-The stock will open when the NASDAQ or NYSE says they are ready to pair off orders. No set time.

2-Yes, enter an order at anytime before it opens that day. I would not recommend market orders.

 

[Shaun]

1-The stock will open when the NASDAQ or NYSE says they are ready to pair off orders. No set time.

2-Yes, enter an order at anytime before it opens that day. I would not recommend market orders.

Thank you

What type of order would you recommend? I'd like to acquire it at a price as close to the open as possible

 

[OTM-Options]

Thank you

What type of order would you recommend? I'd like to acquire it at a price as close to the open as possible

• Market Order: If you absolutely want to buy shares at any price.
  
• Limit Order: If you want to buy shares, but not above a certain price. The order might get filled at a better price OR not filled at all.

EDIT: Do not believe the Marker Order fear mongering that you might read on ET. You will not get a fill of $100,000 on a $50.00 stock. The fill will be fair - I use Market Orders all the time.

 

[rmorse]

Thank you

What type of order would you recommend? I'd like to acquire it at a price as close to the open as possible

Limit. Pick a price and be willing to not buy any if it gets too high.

 

[Shaun]

What if I am one of the first to place a market order? Would that be a way for me to have the best chance of acquiring at the open price?

Does anyone have a recommendation as to what they would do in order to acquire at open price?

 

[qxr1011]

do not get involved in IPO

 

[rmorse]

do not get involved in IPO

I agree.

 

[Swan Noir]

IPO's can trade with wild gyrations on day one. You sound like you are a buyer based on fundamentals. Decide the most you are willing to pay and place a limit buy order at that price. That way you won't pay triple the new issue price unless that is within your parameters of value.

 

[OTM-Options]

IPO's can trade with wild gyrations on day one. You sound like you are a buyer based on fundamentals.

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.