"Wings Insurance"

[sails]

Hi jackson8,

I’m not sure exactly how the process works but when you put an order through a request for a spread is initiated so the market makers shows a spread (normally), I have no idea how it works whether its the broker manually requesting or maybe its an automatic process, I suspect it may be a broker request as once I had to put a phone order through and the broker was able to get a spread to appear then he put my order on.

You can usually ask the broker to get an option quote from the MMs for you. It only appears for a few seconds before disappearing again, so you either need to have pen & paper handy to jot the quotes down or take a screen shot.

Alternatively with Iress and when the quotes are displaying in the Market depth window, you can click on the "detail" button which brings up a new little box which is not dynamically updated and so holds those quotes while you have time to work out mid price estimates, etc.

I guess the problem with the likes of Commsec is that by the time you get your phone call answered to ask for a quote, the opportunity you saw maybe gone...

WebIress does have an "option quote request" function. Right click on an option code and on the drop down list, there should be "Option Quote Request". I'm not sure if all brokers have it enabled or if it is only handed out selectively as they don't like it being over-used.

Even when asking for quote requests, I believe MMs are only obligated to respond to a certain percentage, so sometimes you knock on the door and and get no response This is fairly typical for the first half hour or so in the mornings.

I have heard that the MMs have software controlling their quotes, so in most cases, those quotes are probably sitting there but, for whatever reason, they make them invisible until they receive a quote request. In some cases, there are multiple option MMs per stock, so it probably explains why there are sometimes several quotes that pop out for those few seconds when requested.

 

[cutz]

Alternatively with Iress and when the quotes are displaying in the Market depth window, you can click on the "detail" button which brings up a new little box which is not dynamically updated and so holds those quotes while you have time to work out mid price estimates, etc.

Hi Sails,

Thanks for the tip

 

[jackson8]

Mar 09 32.00 6.40 93
Mar 09 36.00 4.44 2
Mar 09 37.00 4.35 40
Mar 09 38.00 12.23 2
Mar 09 40.00 4.80 90
Mar 09 41.00 2.32 5
Mar 09 42.00 5.45 10
Mar 09 46.00 1.45 1
Mar 09 47.00 1.43 4
Mar 09 48.00 0.00 4
Mar 09 50.00 1.10 3
Mar 09 55.00 0.75 1
Mar 09 60.00 0.68 3


above are rio call sales for friday 5th

why would the $12.23 sale be so far away from the actual market
and secondly $48 dollar contract shows 4 contracts sold but at $0.00

anyone know what gives here as the 38 call seems to be pretty good premium
and i dont understand how a sale can be 0
thanks
gary

 

[cutz]

Hi jackson8

Out of curiosity I checked out the course of sales last Fri on that 38 call and its showing 2 trades at 3.23, the 12.23 price was actually traded on the 28th of Nov, between the 28th of Nov and last Friday this series was traded for between about 5.8 and 3.23 with the condition code of Tailor Made Combination which I don’t know what it means but I noticed it doesn’t register against last sale price.

The 48 call was traded for 1.325 with the same code.

 

[jackson8]

Hi jackson8

Out of curiosity I checked out the course of sales last Fri on that 38 call and its showing 2 trades at 3.23, the 12.23 price was actually traded on the 28th of Nov, between the 28th of Nov and last Friday this series was traded for between about 5.8 and 3.23 with the condition code of Tailor Made Combination which I don’t know what it means but I noticed it doesn’t register against last sale price.

The 48 call was traded for 1.325 with the same code.

ok thanks for that , those figures came from commsec platform and from afr.com end of day share tables
must be some discrepency in data between them all
i have noticed with commsec that their onscreen quotes seem to lag in time. have tried using professional trader but does not seem to have options trading platform on it
thanks for your help