[TheOptionClub.com] Re: re buy back of short options

 

DT trades in .05 increments at these low prices. However, IB will take a penny increment order and try to match it internally if possible, but it can't be sent to the exchange because of the price increment. You would have to bid at least .05 cents to have it show up on TOS (or anywhere outside of IB's internal matching engine).

I trade through IB as well and I actually see your .01 cent bid on my screen, however, anywhere but IB will show no bid at all currently.

You can check for yourself as to whether or not a contract trades in penny increments on the IB platform by right clicking on the option and choosing contract info – details and it will show you all the info about the contract and where/how it trades.

Hope this helps.

Ken

--- In OptionClub@yahoogroups.com, Meuter Gisbert <gismeu@...> wrote:
>
> Hi,
>
> some time ago I sold 10 DT April 17.50 calls for 0.20 each.
> Now the bid/ask spread is 0.00/0.10 and I want to buy them back
> to regain that margin, because it is still a while until April.
>
> So I entered in my IB account the trade btc for 0.01 each,
> yet on my TOS trading platform it does not show up.
> TOS is still giving 00/10.
>
> So I wonder if I can't trade DT in penny increments?
> Anybody know?
>
> Thanks, gis
> P.S. DT is Deutsche Telekom
>

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