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Post by alethea on Feb 26, 2015 11:47:20 GMT -5
Hey, someone traded Jan, 2016 $10 calls at 1.31. These have been languishing in the 50 to 60 cents range. Both Ameritrade and Scottrade show 1.31 as last trade but the current Bid and Ask are 51 and 55 cents?
What's going on here?
Sorry. Didn't mean to put this in the Articles sub-board. Please move if so desired.
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Post by ashiwi on Feb 26, 2015 15:50:40 GMT -5
Looks like someone put in market order to buy 10 calls and the mm took it way up.
I always use limit orders.
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Post by alethea on Feb 26, 2015 16:02:27 GMT -5
Thanks for the reply. I kind of figured that being up 129% was too good to be true, but for a nano-second or two, I could not help thinking, Is the Squeeze happening at this moment?
I don't know much about options but I thought one had to use limit orders. I thought market orders were not allowed. Perhaps that may just be the policy of Scottrade.
Thanks again!
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Post by gomnkd on Feb 26, 2015 16:55:39 GMT -5
The guy got screwed. probably a retail novice trader who thought he/she placed a buy call option for 2017. Imagine the shock and horror.
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Post by papihoyos on Feb 28, 2015 8:20:33 GMT -5
A fool trades market orders in options.
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Post by mnholdem on Feb 28, 2015 9:27:35 GMT -5
gomnkd's suggestion is more likely, although if there were no other open bids, who knows? I'm thinking someone selected a 2016 call by mistake and enters a limit order between the bid/ask for 2017 calls? Possible if someone's using an iPhone or some other small screen. Expensive mistake, if that's the case.
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Post by papihoyos on Feb 28, 2015 11:37:55 GMT -5
Has to do with liquidity also. The higher the open interest, generally, the more liquid and more likely a fill at the mark.
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