Posted by stevieb294 on 25th of Dec 2019 at 08:46 am
I think it's pretty simple really. I trade credit spreads
on stocks and the SPX and I always use the midpoint to enter and
exit. I always get filled and I never (rarely) chase the
price. I think a lot of traders make it way more complicated than
it has to be.
I look first at the volume and the # of bids on each side and
the open interest - then put in a day bid (if vol of bids is high)
a nickle over the horde. I get filled on at least 1/2; often 5
minutes before the market closes. That's often with the price
of the underlying flat.
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I think it's pretty simple
How do you folks deal with the (often huge) bid/ask ...
Posted by stevieb294 on 25th of Dec 2019 at 08:46 am
I think it's pretty simple really. I trade credit spreads on stocks and the SPX and I always use the midpoint to enter and exit. I always get filled and I never (rarely) chase the price. I think a lot of traders make it way more complicated than it has to be.
I look first at the
Posted by jwilder on 25th of Dec 2019 at 10:11 am
I look first at the volume and the # of bids on each side and the open interest - then put in a day bid (if vol of bids is high) a nickle over the horde. I get filled on at least 1/2; often 5 minutes before the market closes. That's often with the price of the underlying flat.