Options limits to buy at bid?
- Thread starter SanMiguel
- Start date
Which options? What is the market doing? I'm often able to buy at the bid and sell at the ask. And other times you have to start at mid and move until you get filled.
I also look at the IVs to make sure my trade makes sense (at least to me). IOW on a thinner-traded stock (wide b/a spread) are the quoted prices way off of recent vols? If the recent IV was around 45, then I don't want to pay for an IV of 80 or sell at IV 20. I would put in an order at IV 45 and see what happened.
Edit: it's too early...What I meant was, quite often the market will soon move enough for you to get a decent price on your trade. And other times you may have to chase a bit. I've had plenty of good trades either way.
I also look at the IVs to make sure my trade makes sense (at least to me). IOW on a thinner-traded stock (wide b/a spread) are the quoted prices way off of recent vols? If the recent IV was around 45, then I don't want to pay for an IV of 80 or sell at IV 20. I would put in an order at IV 45 and see what happened.
Edit: it's too early...What I meant was, quite often the market will soon move enough for you to get a decent price on your trade. And other times you may have to chase a bit. I've had plenty of good trades either way.
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Buying at the ask is the normal. I'm trying to set a limit to buy at the bid like in stocks. If someone submits a market order to sell at bid,I get filled.
...or if the stock moves. It saves the spread
No. You are taking your trading platform's default as "normal." That's like learning to box from watching Rocky movies, where your chin is the spread: you're gonna get *pounded* -- and you're going to deserve it. But *don't* think it's "normal."
If you are trying to exit a trade pronto, the best course is pay the bid price with a corresponding limit order matching the bid price. Like a market order but, with a fixed cap on how much you are willing to sell it for. Most times, you get filled. Personally, I set a limit order midpoint between the bid and the ask. It tells the market maker you are a serious buyer but, only at that price or better.
The bid is the NBBO so there is no way that you’re buying the bid unless the mkt clears the book or price moves against you. C’mon.
"Buy at the Bid"... "save the spread"? HOGWASH!
You may have placed your limit order at the "then" Bid price, but you don't get filled until the market has moved to the point that your order has become the current Ask.
If it were possible to "save the spread".... EVERYBODY would be doing it and there would be no "spread".
(I don't intend to rag on you or be critical... but you shouldn't feel smug because "you're smart enough to buy at the Bid".)
You may have placed your limit order at the "then" Bid price, but you don't get filled until the market has moved to the point that your order has become the current Ask.
If it were possible to "save the spread".... EVERYBODY would be doing it and there would be no "spread".
(I don't intend to rag on you or be critical... but you shouldn't feel smug because "you're smart enough to buy at the Bid".)
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If you set a buy at the bid price then any market order seller consumes one of the orders at that price? Same as a market maker, no?
WHUT?
Every now-and-then, scat-man posts some head-rotatingly weird stuff. This is one of those times. Jeeez.
SHHHHHHHH!
Apparently, this is a big secret. OMG.
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What happens to me more often than it should: 
1. My system sez to get long near the open.
2. I wait a bit for prices to settle down some.
3. Put in order at mid.
4. Price moves up, change to mid.
5. Wait for it to come back.
6. Price moves up, change to mid.
7. Wait a little more.
8. Price moves up.
9. Dang...trying to follow my system so I go ahead and grab the ask.
10. Price moves down.
1. My system sez to get long near the open.
2. I wait a bit for prices to settle down some.
3. Put in order at mid.
4. Price moves up, change to mid.
5. Wait for it to come back.
6. Price moves up, change to mid.
7. Wait a little more.
8. Price moves up.
9. Dang...trying to follow my system so I go ahead and grab the ask.
10. Price moves down.