Sell options execution

[ironchef]

Typically I will start with a 1 lot routed to the CBOE. I have found the generally they will give me the best fills. Say a call option is quoted at 1-2. I wouldn't assume the mid point is fair price, I would first look at the strikes around it. For example if the strike just below is quoted 1-1.6, you would know that the mid price of your strike is too high. If this is the case, and I wanted to buy the option, I would first put in a 1.10 bid and wait a couple of seconds then cancel. I would then go up slowly until filled

Great comments. I learned something new from you.

I usually looked at IV at the strike and those above and below to gauge if it is miss-priced.

 

[Doobs789]

Good day

I usually sell calls on high volatility stocks and sometimes i see that some orders executed near the theoretical price but in that moment bid and ask are quite different.

Like bid/(my)ask 1.0/2.0 theo val 1.5 and executed on 1.6
I know that cboe route has a possibility to place hidden orders but i suppose that not every route support these kind of orders

Could you help with it and tell how i can catch these trades? maybe i should place price a little bit closer to theoretical price or maybe there are some limits on spreads

Thanks

So you attempted to sell at 1.5, and it filled at 1.6? Congrats, you filled .10 better than quoted mid. What are you complaining about?