Standing of Option Orders with All or None AON Qualification

Today's Options Trading Subjects include: All or None (AON) option orders and the Chicago Board of Options Exchange (CBOE) hotline and website.

Dear Options Trading FAQ:

I placed an order to buy 20 calls of xyz at 2 9/16 all or none with the bid-ask at 2 1/2 to 2 5/8. Not only did I get nothing done, but they are not reflecting my 2 9/16 bid. Huh?

Frustrated Buyer of Options

Dear Frustrated Option Trader:

I see that you don't realize that AON orders (and any other "restriction" orders like IOC or FOK) don't have any standing versus the published bid-ask. They can't show your bid due to the size restriction. You may see some option trades go off at your price but you'll not be entitled to that transaction price. This is true of not only options orders, but of other securities as well.

Further info can received from the exchanges, which brings us to the next question:

Dear Options Trading FAQ:

I think I need more help than even you can give me. I want to start back at square one.

Former Big Shot

Dear Little Shot:

Call the CBOE (Chicago Board of Options Exchange) for free literature. They have a full array of educational materials to help you out. Reach them at (800) OPTIONS. Their snazzy web site is good too: http://www.cboe.com

Good luck and trade well! Remember, an educated options trader is the best options trader. Browse these books books on trading options.

Tags: Options Trading, Options Broker, Options Order

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