Where is my order in the queue?

[yonnie]

thanks everybody,

am going with exgeos` suggestion and will sign up with sanford.

for $ 9.99 a month I get the premium plan and included in that is market detail: "where you can see every order at every price level".

exactly what I want, so everybody thank you for your contribution.

 

[RichKid]

If the cheap option is a means of paying for data, then it could be considered a "free" lottery ticket. Any returns on that option are simply a bonus. If I was doing this, I would be looking for a 1c or less option as close to the money as possible and with only a few days (or less) until it expires. This is when close out-of-the-money options become very cheap and yet have the best opportunity of making something IF the underlying makes a big move into expiry in the direction of your option. No guarantees - but it can and does happen on rare occasions. Risk to reward is great as you are paying the money for data anyway - and even if you only had a win once a year on the option, it's a bonus.

If you buy something further out in time for 1c, the market really would have to make an extraordinary to make anything on it.

Not recommending this as a strategy in itself as time is working heavily against such a position. But it is the greek component in option pricing called "gamma" that can make that option accelerate rapidly as expiry approaches and if the share price exceeds your option strike price - otherwise known as being "in-the-money".

I sometimes use a version of this strategy to hedge gamma in front month short options coming into expiry. In fact, this is the type of trading I would have been doing with IB if the account was still open. While the strategy mostly loses and the options expire worthless, it can provide cheap gamma insurance coming into expiry.

My - hope this helps!

Thanks Sails! That's a good point, I didn't realize that you could get oppies for 1c or less closer to the money a few days from expiry, that really would be a bonus. Something to look out for.

On a cautionary note, if someone does apply to commsec for eto trading permission note that even if your application is approved on the basis that you fully understand the risks involved, there is always the risk that options leverage will be used in a high risk fashion. If that happens the cheap access to PT platinum may result indirectly in huge losses so caution is warranted. I will repeat this warning in the PT1 thread.

 

[sails]

Thanks Sails! That's a good point, I didn't realize that you could get oppies for 1c or less closer to the money a few days from expiry, that really would be a bonus. Something to look out for....

They're not always easy to find - it's a case of hunting them out! High IV levels, as we have currently, puts them further away from the money.