Jeffrey:
1) Refer to Michael DePinto's most recent posts regarding the time of day options trade.
2) In my observation, the lag between stock prices & option prices
is about 1 foot per nano-second, (put plainly, that is the speed of light).
3) Your last question is a good one. By definition, a lightly traded
option is illiquid, due to the absence of public buyers & sellers.
*******This will probably get me more flak than a b-17 over Berlin***
but my honest opinion is you are treated as you treat the specialist.
On many, many occaisions, if I enter an option order at a price, I
suddenly find myself the posted "bid or "ask". (In other words the market moves without me being filled.) On thinly traded options,
at least those I frequent, it would appear there is an unspoken "gentleman's agreement." If I put in a market order to buy, I am filled at or below the ask. Same on the sell side.
I must STRONGLY remind you there is NO requirement that this must happen.
I trade 10 -15 lots of a few stocks I follow. There is no requirement
the specialist honor that size order. But, I have been treated fairly.
On the few occaisions I enter spreads, I've found they are being filled far more frequently than a year or so ago.
Just my experience.... no promisies, no suggestions & absolutely no guarantees.
Doug |
