The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. Welcome back. This is Kirk here again at Option Alpha and welcome back to the daily call. On today's call, we’re going to talk about the pros and cons of using a market order when trading options. I think a market order is a very simple concept to understand. It’s a very simple way to get trades into the market, but I think that there's a lot more drawbacks than there are potential pros, especially for an options trader as opposed to potentially doing this on stocks. Where you find many people using market orders is with stock. Stock I think is okay to do a market order, especially if you’re trading a highly liquid underlying because typically, the bid ask spread and the liquidity is so great that a market order gets filled basically at decent pricing or at market pricing. But where we typically run into issues is when people start using market orders with options. First, let’s understand what a market order is. A market order is basically telling your broker’s platform or your broker that you l