option quotes

[jeddins]

Are there any exchanges that the options page won't quote? this morning i was trying to buy the leh dl at 3.10 which was the ask at 11:35 on ISE but when i called a buddy of mine he said the ask was 3.30. whats up with that. he was using ilx.

[JayF]

jeddins,

There are no exchanges I am aware of that are excluded from the Options Window, and certainly not ISE. Was the quote your friend was giving you a composite quote from all exchanges or specific to the ISE?

[jeddins]

it was a composite quote not just for the ise

[gspiker]

JayF,

Could you tell us which exchanges are reflected in the option window? I too have seen best bid/ask prices quoted on IB that are not reflected on the option window.

Maybe there is a data service I have to select for my account that I'm missing?

G

[jeddins]

a real time example is right now at 12:37 in the GS DO with a bid of 1.20 and an ask of 1.10 the exhanges are both ise

[JayF]

Originally posted by gspiker
JayF,
Could you tell us which exchanges are reflected in the option window?
G

For Equity Options, the exchanges are CBOE, AMEX, ISE, PSE, & PHIL.

[gspiker]

Thanks JayF.

[JayF]

We were able to duplicate this, and are investigating. Thanks all for the reports.

[jeddins]

More option misquotes

for another example of option misquoting check out leh dl at 9:41, its 3.80 bid and 3.70 ask, its tough to trade with that type of option quoting

[JayF]

After further research, it was found the reason for these discrepancies is that for "zero volume options" the bids and asks are only updated on every "3rd background loop".

For an option to get into the zero volume option category, it has to not have traded for the previous day. In order for an option to come out of that state, it needs to trade only once, however it will not update normally until the following day.

The 3rd background loop refers to a process that occurs on our backend that is doing a number of maintenance tasks. For every 3rd run of this process, if a zero volume option has an updated bid or ask, then it will be updated at that moment with the latest quote.

[jeddins]

thanks for taking the time to figure it out. is there anyway to change the loop or is that just the way it is. I do feel better knowing there is a valid reason for this.

[JayF]

At this time, we have no active plans to change this, however we are evaluating this for possible adjustments in the future.

[JayF]

Originally posted by JayF
In order for an option to come out of that state, it needs to trade only once, however it will not update normally until the following day.

I was mistaken. Once the option trades only once it comes out of the state of being a zero volume option.