When considering SPY options in particular, I have found that lots of 10 seem to get better fills than individual contract orders.
--
http://themarkettruth.blogspot.com/
Systematic Options Writing
- Thread starter Painkiller
- Start date
When considering SPY options in particular, I have found that lots of 10 seem to get better fills than individual contract orders.
--
http://themarkettruth.blogspot.com/
I have heard and found it also to be true myself that larger orders (10, 50, 100 contracts) are easier to get filles than 1 or 2 contracts because the MM can hedge larger positions easier to get to delta neutral. A market maker told me this and that is why they will tend to hit the larger orders between the b/a than a 1 contract order because it is easier to offset or match up.
Right now I trade between 30 and 500 depending on a lot of factors and the larger orders seem to fill quicker. Based on my experience and what I was told I would say that larger orders get better fills in the SPX.
Phil
Right now I trade between 30 and 500 depending on a lot of factors and the larger orders seem to fill quicker. Based on my experience and what I was told I would say that larger orders get better fills in the SPX.
Phil
Hey Phil,
Question about your option writing, are you just consistently writing wide strangles or just puts? Also, how long have you been doing this? The money seems safe in low-vol environments like now, but it's incredibly easy to blow up in one big move when vols pick up to 25-30+ again - I'm sure you know this though. My questino is, how would such a strategy need to react in that kind of situation?
--
http://themarkettruth.blogspot.com/
Question about your option writing, are you just consistently writing wide strangles or just puts? Also, how long have you been doing this? The money seems safe in low-vol environments like now, but it's incredibly easy to blow up in one big move when vols pick up to 25-30+ again - I'm sure you know this though. My questino is, how would such a strategy need to react in that kind of situation?
--
http://themarkettruth.blogspot.com/
The money seems safe in low-vol environments like now, but it's incredibly easy to blow up in one big move when vols pick up to 25-30+ again...
Being new to this type of trading I appreciate the feedback from more experienced traders. Re the previous comment, I would think it might be better to write OOM spreads while the market was more volatile in order to capture more premium and/or write the spreads further away from the market.
Would appreciate any and all comments.
Steve
Being new to this type of trading I appreciate the feedback from more experienced traders. Re the previous comment, I would think it might be better to write OOM spreads while the market was more volatile in order to capture more premium and/or write the spreads further away from the market.
Would appreciate any and all comments.
Steve