It went up to 0.55 still I did not get filled. I suppose I have to try to fill each individual spreads...the market shows 54.5
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Why would this get filled?
- Thread starter TimtheEnchanter
- Start date
It went up to 0.55 still I did not get filled. I suppose I have to try to fill each individual spreads...the market shows 54.5
Individually, I got a credit 0.50
There is no such thing as “the market shows”. Your screenshot is showing $0.55 as an average price between bids/asks of 4 different options.
It’s almost impossible that someone else is waiting to buy/sell that exact option combination for that exact price. So you’d need to find 4 people (2 buyers and 2 sellers) that will match your prices for each of your 4 options and each one would need to be willing to give you such price that the total would have to come to $0.50.
The only reason that we can trade such spreads and iron condors is that some market making computers may decide to take the opposite side of your trade, if they can offset their risk by buying and selling various other options (and/or shares), and still make a small profit (say 1 cent per option).
Filling 2-option spreads will be easier since it’s a simpler trade for the other side/computers to calculate, hedge, and trade.
Also, the time of filling your spreads could be different from the time when you tried to fill the IC, while the market is moving today and prices change quite fast, so your IC possibly could’ve been filled a little later, when your spreads were filled.
It’s almost impossible that someone else is waiting to buy/sell that exact option combination for that exact price. So you’d need to find 4 people (2 buyers and 2 sellers) that will match your prices for each of your 4 options and each one would need to be willing to give you such price that the total would have to come to $0.50.
The only reason that we can trade such spreads and iron condors is that some market making computers may decide to take the opposite side of your trade, if they can offset their risk by buying and selling various other options (and/or shares), and still make a small profit (say 1 cent per option).
Filling 2-option spreads will be easier since it’s a simpler trade for the other side/computers to calculate, hedge, and trade.
Also, the time of filling your spreads could be different from the time when you tried to fill the IC, while the market is moving today and prices change quite fast, so your IC possibly could’ve been filled a little later, when your spreads were filled.
Still, the window MKT shows 0.225 and I am selling @ 0.20 - why no fill?
Unless that "Mark" means something different?
Same reason as I described above. There is no such thing as “MKT” for options and especially combos. Your screenshot also doesn’t say “MKT”. It’s just an average price between various bids and asks. Did you read my previous explanation?
It’s not possible to know what price someone will give you, so “mark” is just an average of bids/asks.
I had some credit (way out of money) on the PUT side as well. One day! What can go wrong?
It's a credit, so you meant that it went down to 0.55 I presume.
I'm always amazed to see people trading stuff that they cannot understand. And Complex Order on option is probably the most complicated beast of all.
No offense Homely.
Not sure what the column named 'Mark' really means here, but for sure, it doesn't represent the bid-ask market. And remember that this is a credit spread, so with negative prices. So credit 0.20 is higher than credit 0.25.
I'm always amazed to see people trading stuff that they cannot understand. And Complex Order on option is probably the most complicated beast of all.
No offense Homely.