Re: [TheOptionClub.com] What's the Story on Multileg Spreads?

 

All I can say is I listened to one of the CBOE webinars on Calendar trades last year, and at the end we had a question and answer session where the instructor asked us to please not send the whole complex order to him all at once, its too much to deal with so fast - and one leg at a time is better. Not sure if that helps answer the question, but it may depend on how computerized the exchange is... --- On Mon, 3/29/10, Ricky Jimenez <rickyjim@bestweb.net> wrote: From: Ricky Jimenez <rickyjim@bestweb.net> Subject: [TheOptionClub.com] What's the Story on Multileg Spreads? To: "OptionClub" <OptionClub@yahoogroups.com> Date: Monday, March 29, 2010, 7:09 PM A number of brokers allow you to specify a limit buy or sell order on a 2-4  legged spread on the same underlying.  I have heard some conflicting stories about what happens next.  One version says that the entire spread order is sent to a single MM.  Another story is that a computer figures out the limit buy or sell for each leg and the up to 4 orders go to up to 4 MMs who don't know that they originated from a single order.  Anybody know what really happens? ------------------------------------ The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source. To unsubscribe from TheOptionClub, send an email to: OptionClub-unsubscribe@yahoogroups.comYahoo! Groups Links <*> To visit your group on the web, go to:     http://groups.yahoo.com/group/OptionClub/ <*> Your email settings:     Individual Email | Traditional <*> To change settings online go to:     http://groups.yahoo.com/group/OptionClub/join     (Yahoo! ID required) <*> To change settings via email:     OptionClub-digest@yahoogroups.com     OptionClub-fullfeatured@yahoogroups.com <*> To unsubscribe from this group, send an email to:     OptionClub-unsubscribe@yahoogroups.com <*> Your use of Yahoo! Groups is subject to:     http://docs.yahoo.com/info/terms/

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The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

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