Seeking Alpha
  • Ocean Man
    An interesting experience with beating a wide bid/ask spread today: The Aug 30 puts on Z had a bid of $4.50 and an ask of $5.80. Rather than
    2/17/12
    Reply (10)
    • Ocean Man: taking that puny bid, I put a limit of $5.75 and waited 10 minutes. Then lowered it to $5.60 and waited 10 minutes. Then lowered it to $5.40
      2/17/12
    • Ocean Man: and got filled immediately. That's $90 per contract better than taking the bid! This doesn't always work, but always try it first.
      2/17/12
    • Canary Cash: I always play with the machines!
      2/17/12
    • Husky Financial: how many contracts was it for if you dont mind me asking?i feel like doing that w/ a single contract would be tougher thana lot of 5-10, no?
      2/17/12
    • Ocean Man: It would be easier to do with less contracts, even 1 or 2. Sometimes my order for 10 only fills 2 at my lowball price.
      2/17/12
    • BTD70: just an options thing?
      2/17/12
    • humahuaca: mostly just options because very few stocks have such wide spreads. I do the same thing OM as I sell options on some ETFs like FXP where
      2/18/12
    • humahuaca: spreads can be quite wide. I usuallly end up having to hit the bid though.
      2/18/12
    • BTD70: thanks. occasionally I see a wide spread on a stock, it might be worth trying this in a modified form.
      2/18/12
    • BTD70: and I do trade ETF's.
      2/18/12