Hello Smart Option Sellers!
We're currently working an order to buy back our put-sell position for the Oracle December $33 puts for $.05 per contract.
There have been some trades at $.05 in dribs & drabs, but not to the level where I can call it officially done.
I heard from a handful of you who placed the order before we officially did as you had been proactive on it.
For the rest of you working this trade, please let us know if/when you have been filled.
I'm still a bit surprised that we haven't fully been filled yet, but this is the major reason why I like to wait until I see the $.05 offers show up, instead of us putting in a $.05 bid.
I figured that since the market had been $.04 bid/$.06 offer when we entered the trade, we'd be able to easily get filled at $.05 per. Not so in this case.
Once we put in that $.05 bid, the market makers will "lean" on our order and make us wait for as long as possible.
"Lean" is a pit trader term used to describe resting orders such as ours. The market-makers know we are there with a $.05 bid, so they can use our orders as a safety net to help offset completely different trades they might enter .
For instance, they can enter into a different option trade on ORCL that's beneficial to them, but only if they know they can still sell to us at $.05 per contract. They're working on a spread trade using our potential $.05 bid as a crutch, so they will work their other trade and "lean" on our $.05 bid.
Once our $.05 bid is gone, they have nothing to "lean" on anymore to help with the other trade they are working.
Regardless, I hate being leaned on by the market-makers. At this point it's a game of chicken to see who will flinch first.
It's not going to be us!
They'll come around and eventually will fill us. You'll see.
Keep working it GTC.