Options Fills on Bid/Ask Spreads

The answer to the OP's question lies in the individual underlying stock. If you have more than a penny or two wide spread, then there are likely to be CBOE ELECTRONIC DESIGNATED MARKET MAKER ("E-DPM") (see www.cboe.com for more info). These MM's can use flash orders to stop orders from being re-routed, and often do. They use the "save customer money on re-routing fees" argument to do so.

I suggest you try using mid point pricing as a start for the symbols you are trading. Remember to do nothing without understanding the conversion/reverse conversion math. Don't worry so much about all the detail greeks, just know your delta's, gamma's, beta's and theta's to begin with.....and understand conversion pricing. Yes, I said that twice, because without this knowledge you're in big trouble trying to judge valuations.

Keep it simple, option trading really is.

All the best,

Don
 
Hey Don, thanks for the response. What I've noticed is that I did get executed in between bid/ask on spreads but not on the flys. I wonder if a market maker has to handle flys differently than the spreads?
 
Hey guys, here's an update on my options trades with relatively wide bid/asks:

33% got a fill at the midpoint of the bid/ask, betwe. secs to hours
33% had to move closer to the ask, slightly below it
33% no fill or the trade moved away from me
 
Quote from EliteTraderNYC:

Hey guys, here's an update on my options trades with relatively wide bid/asks:

33% got a fill at the midpoint of the bid/ask, betwe. secs to hours
33% had to move closer to the ask, slightly below it
33% no fill or the trade moved away from me
More...

Which exchange are you routing to?
Are your orders single orders or spreads?
 
Also be aware that depending on your broker and where you are routing, you may get dinged with a cancel/modify fee. Some are pretty minimal (BATS), others can be fairly hefty (NASDAQ).

Just something to keep in mind if you are going to work your fills with a bunch of modified orders.
 
I have not had my short orders filled for 4 days so far.

Don't worry about it. Eventually your order will get filled.:D :D I am working the LEAPS though. (3 different strikes)

I stick them a little higher than midpoint myself the last few days. Although after a while everyone ends up matching my quote on the ask side.
 
Quote from EliteTraderNYC:

Hey guys, do you get fills on wide bid/ask options spreads or no where do you get the fills? I.E', must you take the bid ask or do you get something better. Just wondering.
More...

I am in the same boat. look at the order book for the 2014 december 130 put LEAPS contract expiring on December 20,2014.

I am the one lot order sitting on NYSE on the ASK for 22.22, I am the top of book.

The Bid is 20.83 and Ask 20.22 (my order) A measly 39 cents difference, yet for hours no one wants to fill my order.

Whats 39 bucks to some Wallstreet guy? Why not give the small guy a chance.
 
I noticed now that the bid is narrower on the DEC 20, 2014 130 put

to bid 22.09 ask 22.35

I am the last print at 22.22 :)

Why is the bid/ask now narrower than earlier?
 
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