Option - Vertical Spread execution

[sandeepsopc]

Hi all,

Why does an option vertical spread take very long time for execution ?
I am closing position.

I got ACIA 105/110 vertical call spread and it is trading at 116 now with a profit of $150.
when I try to close the position it is not executing.

I experienced this in past with NFLX.

 

[rmorse]

You have to find a price where you are willing to sell and someone else is willing to buy. You have not found that yet. You are valuing the spread at the midpoint, and no one yet wants the other side. You will have to either wait at your price or change it.

 

[OptionGuru]

Don't get greedy.


IMO ..... It's best to accept the respective bid/ask to close the position - especially on expiry day. A bird in the hand is worth two in the bush.

 

[Deuteronomy_24_7]

IMO ..... It's best to accept the respective bid/ask to close the position

Except in the most liquid names, paying the bid/ask on option spreads is painful.

 

[OptionGuru]

Except in the most liquid names, paying the bid/ask on option spreads is painful.

• Having an unfilled order while the position turns against you is painful.
  
• Nothing wrong with accepting the bid/ask - sometimes you have no choice.

 

[El OchoCinco]

Hi all,

Why does an option vertical spread take very long time for execution ?
I am closing position.

I got ACIA 105/110 vertical call spread and it is trading at 116 now with a profit of $150.
when I try to close the position it is not executing.

I experienced this in past with NFLX.

Perhaps post the limit order you are trying to fill and the current B/A spread you are seeing so that we can offer input....

 

[Deuteronomy_24_7]

Having an unfilled order while the position turns

Spreads tend to be slow-moving. In a less-liquid names, the bid/ask can be as large as several days' average move.