Every now and then I see an absurd tick on an option. By way of example, a few weeks ago I saw a Citi option that was trading around 30 cents transact for $1.50.
Similarly today I saw another option (I think NBG) that traded on a similar magnitude... actual range of something like 40 cents and the days ranges was .30-1.00.
Are these sales done by someone in the market to mask their trading strategy? Is it an expensive fuck up by someone? Or is it just a bug in the system?
Reason I ask is... now I'm thinking I should have indefinite sell orders on my option positions at like 10-20x the prevailing market price... and maybe it will actually get a bite.
I'm also thinking that on lesser volume options (obviously not C)... having such a high ask... could upwardly influence the option price.
Misticks were really common back in the old days (a stock would be trading 34.50 x 35 and a trade would go off at 38 or whatever). I'm sure that's what you're seeing here. If you pull a time and sales you'll probably find that the trade never actually happened.
Evidence of how common they were: we had a term for them - "misticks".
You won't get filled up there if you leave a 'take profit' at 10-20x market price. When it does happen, the trade will be cancelled. I honestly don't think you have a choice on the matter. I have had this happen maybe 2 dozen times as a major trader at a major bank in London, and those trades ALWAYS get cancelled. I am honestly not sure if you're even allowed to try to enforce the deal.
You might want to look into that before wasting your time putting in worthless 'take profits.'
This still holds, so don't waste your time.
You'll see the extra $10k in your account, smile, and then two hours later it will be gone.
Thanks for the info, makes sense.
If they don't honor the trade, Ill cut their heart out and eat it while its still beating.
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