Dumb mistake

[schmek...@yahoo.com]

A few days ago I decided to buy to close an options position, which
had shown 0 - 0.05 bid/ask for several consecutive days. So, to save
a few bucks by not placing a limit order, I placed a market order at
the open to buy to close. Well, wouldn't you know it, my trade was
executed at $0.10! This even though, there had not been a trade for
0.10 for several days.

I, of course, violated the most elementary rule of all: Never, ever,
place a market order at the open! Someone is likely to rip you off if
at all possible, which is what happened to me.

My broker (Etrade), to its credit, went to bat for me and got the
execution reversed and then done at $0.05.

BTW, I came from Brownco and was at first skeptical when transferred
to Etrade. I have found their service to be very good, and, most
importantly, their execution of my options orders to be very good as
well.

FWIW.

[arthur]

never place an option market order period

you get more bang for your money and maybe save a liitte too at one of
the option brokers like OX, TOS, or IB

[schmek...@yahoo.com]

On Mar 14, 4:09 pm, arthur <trash.all.s...@xoxy.net> wrote:
> never place an option market order period
>
> you get more bang for your money and maybe save a liitte too at one of
> the option brokers like OX, TOS, or IB
>

Thanks, Arthur. I know IB has lower commissions, but from what I read
you can never talk to anyone. Other than that, how do you get more
bang for your money with these brokers? Thanks again.

[catalpa]

<schmek...@yahoo.com> wrote in message
news:1173909290.1...@l75g2000hse.googlegroups.com...

Etrade has a very odd option order routing statement for 4th quarter 2006.
Option orders are only routed to 4 exchanges: Philly, ISE, CBOE and Pacific.
IB routes to all 6 exchanges ( adds BOX and Amex). What happens to your
option order at Etrade when the best price is at the BOX or Amex?

You can talk to someone at IB if you have an actual problem. A bad fill is
considered an actual problem. IB customer service is minimal, but it does
exist. IB works best for customers that are experienced and self reliant.

[arthur]

yeh IB is more suitable to active traders from what I hear / read.
All three have options tools etc. You really have to see what each
offers iot compare and decide.

a

[schmek...@yahoo.com]

On Mar 14, 11:58 pm, "catalpa" <cata...@entertab.org> wrote:
> <schmekelf...@yahoo.com> wrote in message

>
> news:1173909290.1...@l75g2000hse.googlegroups.com...
>
> > On Mar 14, 4:09 pm, arthur <trash.all.s...@xoxy.net> wrote:
> > > never place an option market order period
>
> > > you get more bang for your money and maybe save a liitte too at one of
> > > the option brokers like OX, TOS, or IB
>
> > Thanks, Arthur. I know IB has lower commissions, but from what I read
> > you can never talk to anyone. Other than that, how do you get more
> > bang for your money with these brokers? Thanks again.
>
> Etrade has a very odd option order routing statement for 4th quarter 2006.
> Option orders are only routed to 4 exchanges: Philly, ISE, CBOE and Pacific.
> IB routes to all 6 exchanges ( adds BOX and Amex). What happens to your
> option order at Etrade when the best price is at the BOX or Amex?
>

I subscribe to a real-time data feed which shows bid/ask for all
exchanges trading an option, including BOX & Amex. In every case I
have been able to get execution at the highest bid or lowest asked, no
matter which exchange happens to be quoting them. It would appear as
if, no matter which exchange received the order, it gets executed at
the best price. Indeed, occasionally I can get execution inside the
narrowest spread. Brownco used to offer this, and after being
acquired by eTrade it appears they are following the same policy.

[arthur]

the skinny....................

Market order:
Best bid ask is mandatory and generally guaranteed by all US brokers

Limit order:
this is what separates brokers since they are paid for volume. no
they do not pay their rent from commissions but rather from "order
flow" and margin interest and interest on customer cash

there are the 'screw you brokers' and the customer oriented brokers.
I have not had experience with lots of um but I can give a nay on
ameritrade. OX seems to be a straight shooter ... so far.

a

[catalpa]

<schmek...@yahoo.com> wrote in message
news:1173967647.2...@y80g2000hsf.googlegroups.com...

The NBBO is the best displayed price, but not necessarily the best possible
execution price. The SEC requires all brokers to route orders to match the
NBBO, but does not require that orders be routed for possible price
improvement. The BOX does offer possible price improvement, but you can't
get the BOX's possible price improvement if the order is never routed there.
In the 4th quarter of 2006 IB routed 10.8% of customer option orders to the
BOX.

[arthur]

we have too many exchanges which works to hurt, rather than aid, the
retail investor. The SEC wouldn't know anything about that.

simply matter of dividing the volume to hurt competing customer bids

a

On Fri, 16 Mar 2007 04:00:49 GMT, "catalpa" <cat...@entertab.org>
wrote: