The Traderszone Network

Published in TZ Latest News 2 October, 2017 by The TZ Newswire Staff

Questions regarding fills on vertical spreads/combos

I am certain my ignorance will be fully displayed here, so bear with me..

MU $39.33
I wanted to trade in this manner:
Sell Oct-6 39.50 put @ 0.99
Buy Oct-6 38.50 put @ 0.55

With my broker (IB) this is entered as a “Buy Combo” order, and the difference between the two values becomes your Limit price. (0.44). However, I entered this order before the open this morning (which I now realize was a mistake), and it was filled thusly:

Bought Oct-6 38.50 put @ 5.00
Sold Oct-6 39.50 put @ 4.90…

read more