To: WBendus who wrote (45731 ) 6/14/1998 6:29:00 PM From: AlanH Read Replies (1) | Respond to
WBendus, re:I have a question regarding the filling of orders on AMEX options exchange for stock options. On Friday I placed a limit order to purchase 10 DIS-FC options at 1 3/8 in the early afternoon. At 2:32.17 there was a print reported for 10 contracts at that price and I was subsequently notified that I received a partial fill of 6 contracts. The data I was using was of the internet, so I requested that my broker confirm via a times-in-trade. The times-in-trade reported confirmed that my fill was part of that 10 contract fill. apparently supercede your order. The simple answer is that IF a market order was placed, such an order is assured 'immediate' execution -- with priority over limit orders. (Whether a market order was actually placed is a potential topic of discussion with your broker.) Reasonably, you might ponder the chronology of such events. However, don't assume that your six contracts were filled prior to the other four; the mystery four could just as easily have preceded your contracts AND would not need to be market orders. So, why was a ten contract lot filled? This has to do with the floor task of matching buy and sell orders. A reasonable explanation is that a seller placed an order with a 10 contract minimum. none of the contracts may be filled if the minimum is too high. (Other variations exist, although such variations are generally appropriate for cleanly exiting hedged positions, etc.) So, IMO the only way to assure execution is with a market order -- running the risk of being fleeced.
