and there can be surprisingly large variations bids, asks, and spreads offered in the case of a fast moving option. Some brokers supply quotes based on one exchange, while others, like Fidelity, provide composite quotes (the highest bid on the 5 exchanges paired with the lowest ask on the 5 exchanges). If you place a market order with no instructions, your broker will route the order to the exchange of their choice - the one where they have an agent or the lowest contracted cost.
I would guess that would be a particular problem with low volume options which were the case here. My broker gives an option as to which exchange to use. I chose CBOE, simply because it gets referenced the most, at least in the stuff I read.
Then, as I said earlier, I decided it would be best to put a limit order in because of the low volatility.
As for the disparity between Dale's quote and mine, I would guess, again, the low volume complicates that.
Frank, while I'm thinking about it, I need to thank you for Monday morning. I hit the computer first thing with a plan to write one of my first small contracts on NTAP. Your note about the IBM rumours (I think it was that), stopped me and while I considered the implications, the Nasdaq took off. Saved me some money.
John |
