Not to mention slappage (indiscriminately bad timing).
Sounds to easy.
- Thread starter drasfs
- Start date
Just visiting ET and of course I'm reminded of why I didn't like this forum. "... it sounds logically correct . . ." This is one of the last places from which to expect any logical thinking or commentary. (However, there are a few posters who think logically here.)
I don't understand why people who do not understand logic or simple math terms even trade with real money. What makes this sound "logically" correct? I wouldn't have any qualms with that post if the wording was "this sounds good to me." When people start talking about logic incorrectly, I kinda get emotional.
If you're trading with a retail broker, depending on their platform you might be able to get away with this strategy in small sizes, assuming you always get filled at your limit price ( there are some brokers that allow this ). You of course have to place your limit straddle fairly tight aroudn the current market price and as close to the announcemnt as possible to aoivd any pre-announcment moves quick often happen on larger figures that might be leaked or perhaps just mkt spoof. THe problem is in the wholsale mkt, if you place your stop limit orders above and below the curent price and the market gaps, you simply won't get filled. If you try using a mkt order, you stand to get filled outside mkt if you're doing significant size and the book is more or less empty.