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Non-Tech : Bid /Ask Spreads - Market Manipulation

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From: Justinfo9/10/2013 1:20:42 AM
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Hoping to revive this thread and get some current market mechanics discussions going.

I will start with what I found with illiquid equity options 6+ months out. Newly minted IPOs have a huge spread on options far out wrt time. It has been super frustrating trying to get a decent fill. Some of the techniques I use:
-put in a purchase limit order right at bid and let it sit for an hour after which I increase my limit order to half way between bid and ask, noticed my order executes right after in many cases.
-literally walk 1 contract at a time: the ask price often drops after a contract has been filled, so I get one contract order filled wait for the drop and place another order. If I intended to purchase 10 contracts I walk a few anywhere from 1-3 and place a order for the rest at or close to ask

Happy trading!
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