more on ZNLAT:
Just bought my first options today. Interesting. The bid-ask was 12 1/8-12 7/8 , when I put my limit order for 15 contracts at bid 12.5. Nothing happened for a while, the stock continued in a narrow range, 73.5-74.4, the bid-ask didn't change on the CBOE site. Then, my order cleared, and I got all 15 for 12.5. The bid-ask then changed to 11 7/8-12 5/8. I never actually saw a ask at 12.5.
I'm imagining some guy in a glass tower somewhere, seeing my order, thinking "let's wait and see if the order changes to market, or the limit bid price goes up, or the underlying continues to show weakness. How badly does this guy want those options? Then, a while later, he says to himself, "well, I guess he won't buy unless he gets 12.5, and INTC is slipping below 74 (which had held the last few days), might as well fill it." So me (sitting in my office in a dusty town on a sand spit on the northwest coast of Alaska), and some trader somewhere have an anonymous interaction, and money changes hands ("money"= numbers on databases somewhere; "hands" in a completely symbolic sense.) We live in an age of miracles. |
