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RUT Bfly fills

Discussion in 'Options' started by randyr, Apr 27, 2015.

  1. randyr

    randyr Member

    I am fairly new to the RUT BB (Bearish Butterfly) and M3 strategies. I've been trading them in papermoney for over 6 months and just started trading them in real money. Today, I was trying to exit my May BB trade and set my ask price just above the mark. RUT continued to move down and I saw the mark price on the bfly go as much as 0.35 above my ask price, but I was never filled. Is this normal? Typically, how much above the mark do you get filled. Is there a better way to exit/close these butterfly trades?

    Thanks for your inputs,

    Randy
     
  2. Paul Demers

    Paul Demers Well-Known Member

    Hi Randy
    I find that getting filled in either the RUT or SPX is tougher on days when the market is moving around a lot. The mid prices showed on the platforms may not be the true price. When the market is volatile the MM's will tend to back burner the complex orders in favor of the singles or spreads as they may be easier for them to hedge. I tend to start trying to get my orders filled two or three days ahead of when I want to put the trade on so as not to feel pressured.

    Hope this helps
    Paul
     
  3. Gabor Maly

    Gabor Maly Well-Known Member

    Also there was a good discussion on fill prices and market makers in the Feb 3, 2015 webinar with Curtis and Casey Platt. Worth checking this out if you have not seen it yet, probably won't give you the full picture but sheds some light on many aspects of filling an order.
    Cheers
    Gabor
     
  4. Trader G

    Trader G Well-Known Member

    Time of day seems to impact it as well. I used to try and be consistent at 3:30 on entry/adjustments but now I may start earlier so that I have time to give the market a chance to fill my prices. On the M3 after I have made adjustments and I want to close it, I break everything up in to verticals. I know some people actually put in their closing trades as a broken wing condor package but I have never had a lot of luck with those. On entry however, I find the initial butterfly gets filled pretty easily.
     
  5. tom

    tom Administrator Staff Member

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