How GTC Orders give you “Magic” Fills

3 Responses

  1. Hey Dan thanks for this GTC information, please be advised that if you’re trading options you’re going to possibly get executed on your GTC order literally the same day your options are set to expire. Stale GTC orders can be expensive if you forget or worse if your reasons for entry have changed since you entered your GTC order.

    I learned the lesson the hard way when my forgotten GTC order got executed and my opinions for entering the original order changed or evolved.

    Thanks,

    MN

  2. Hey Dan,
    Ultimately orders can only be filled if there is adequate volume.
    One of the best trades each year is the bounce in the VIX. At the moment the VIX is approaching a long-term support level. To buy at support and sell at the top would be an awesome trade (i.e. “a magic fill “)
    Unfortunately, I have heard that a put option cannot be sold at support because of lack of liquidity. Everyone knows the support level, so no one is buying.
    I assume the same problem would be encountered with the S & P 500 because the VIX and S & P 500 are inversely correlated.
    This situation may be unique, but I would expect similar problems at all major support and resistance levels. What do you think?

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