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The Option Alpha Podcast

130: Five Quick Tips For Smoother Option Order Execution

The Option Alpha Podcast

Kirk Du Plessis

Education, Options Trading, Trading, Investing, Stock Market, Business, Finance

4.81.2K Ratings

🗓️ 14 May 2018

⏱️ 20 minutes

🧾️ Download transcript

Summary

Show notes: http://optionalpha.com/show130 Seems most traders constantly struggle with getting option trades filled. And since we never suggest using "market orders" as a quick fix for entry problems, today I'm offering five quick tips for smoother option order execution. It's a simple framework you can walk through the next time you're having trouble getting a trade filled in the market. Hint: #2 is the most common mistake and easiest one to fix right away.

Transcript

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0:00.0

You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make

0:06.3

smarter trades learn how the stock market really works and generate consistent monthly

0:11.2

income. Now your host and head trader at

0:15.0

option alpha.com Kirk depluses.

0:20.0

Everyone this is Kirk here again at option alpha.com working every single week to make this the most popular investing podcast offered online and in iTunes because it's based on one thing and one thing only and that's helping you guys make smarter trades.

0:33.1

So again, thank you so much for tuning into today's show.

0:35.8

I do not take that for granted.

0:37.3

I love that so many people tune into today's podcast.

0:40.4

And as always, I appreciate you guys writing reviews and sharing online. It always helps spread the word about what we're trying to do here.

0:47.0

So today I want to go through five quick tips for smoother order execution. I still feel like people are getting hung up on a lot of the same things when it comes to executing orders and mainly it comes down to trying to force things into the market that they shouldn't be or trying to rush things.

1:04.8

But you don't ever need to rush it. You can probably take a step back and hopefully today will calm your nerves a little bit and help you get into orders a little bit smoother, maybe a little bit faster and hopefully at better pricing too.

1:17.9

Before I even talk about that, I wanted to also mention one of the coolest features that

1:22.3

we have rolling out with our new

1:24.0

auto trading platform in the next couple weeks is going to be this idea of what's

1:28.4

called smart pricing and so we're trademarking this term and we're kind of you know

1:32.4

poigneering this idea around

1:34.2

options trading and especially in the field of options trading bots but what our

1:39.4

team has developed is is through smart pricing is that bots will go in when they start making

1:45.0

automatic trades and they will actually start entering multiple

1:49.5

orders at more favorable pricing and then start working their way up from there.

1:55.1

So for example, if you're getting into a trade and let's say the mid-price is a dollar,

2:00.7

well the bot will actually go in and start entering orders automatically for something lower than a dollar so that you potentially could get in and pay something lower than a dollar or if you're selling options the bot will try to go in and start adding

...

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