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Options Trader Pro
Basic Strategies for Big Profits in Any Market

Price Entry

I want to discuss entering the price on your order. When the market is wide, I recommend that you try to offer the spread in the mid-range.

I want to discuss entering the price on your order.

Back when I was on the trading floor, if the market on a call was $1.00-$1.15, that was the market and you couldn’t get filled inside that market. But today, competition between computers and the various exchanges have tightened the markets.

After I make a trade recommendation, I watch the strikes very carefully after I send out my Alert. Today, I was watching the UPS strangle after I recommended that you sell half. When I made the recommendation, the market was $2.07-$2.15, and I recommended selling at $2.03 or higher to give you some time and room to get the trade done (expecting/hoping that you’d get a much better price).

So the market at the time of the recommendation was $2.07-$2.15.

When the market is this wide, I recommend that you try to offer the spread in the mid-range. I offered my spread at $2.10 and my order was instantly filled at that price.

My point is that you don’t need to hit the bids or take the offers (unless I specifically say “get out fast!”).

So if the market is $2.07-$2.15, offer at $2.10. If you don’t get filled at that price, try $2.09, then $2.08 and so on.

You will be amazed how you can get filled at better prices … sometimes.