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"Past Performance is not indicative of future blah blah bla".... but historically December through February are strong up months for the SP500. If you are serious about not outsmarting the market, and the playbook for the market for the past 100 years is available, why not use it? For...

If the exchange pays the rebate to the broker1, and broker1 pays to the trader, and broker2 doesn't charge for taking liquidity, who is losing here? It seems like it's broker 2, for not charging for the trade, which they would have had to pay to the exchange. Even if broker 1 isn't paying...

This doesn't make sense to me. Why is the amount of risk taken a concern of the government? If I understand correctly, the source brokerage was offering rebates for trades, with the hope that the trades were providing liquidity. The trades did not provide liquidity. The brokerage's hope...

It would be nice if the SEC would state what section of regulation was broken.

It just proves that it actually is live.

If the option trade is not sent to OCC for clearing, who does the enforcement of stuff like RegT and Finra Margin requirements? Do the OTC trades need to still be reported to the SEC? Stepping back, if these big trades are happening off the exchange, and without being reported anywhere, do...

That's fair, liquidity is not exactly the right term. But that said, OI/Volume shows where everyone is trading, and more trades happen at the round strikes. My (admittedly non-data based) experience for longer term options is that round strikes do have tighter spreads. Aside from Bid-Ask...

Trading SPY, I've noticed that some strikes tend to have tons more liquidity than others. I'm curious why traders focus on a few, round numbers? For example, the open interest in September SPY Calls: $445: 48.2K $446: 16.1K $447: 19.9K $448: 12.9K $449: 11.4K $450: 145.5K $451: 38.2K...

It's weeks like the last one that really get me. I payed the tax man last week, leaving little left over to buy into to the infinite money machine.

Being honest, I don't believe the graph you posted. The 3x target for the ETF is just that: a target. TQQQ frequently fails to meet this target, notably when volatility is high. Last Friday, QQQ gained 1.51%, while TQQQ gained 4.48%. If TQQQ was really 3x, it should have hit 4.53. In...

Correct. but.... Suppose you have $6000 in disposable cash every pay interval. This means you can only buy 1 contract, leaving $2000 to sit on the sidelines until the next period. The smaller contract size makes it easier to spend a constant amount each interval. It's worth it to me to...

I am using options as cheap access to leverage. I typically buy and rotate 2 year ATM calls, once every two weeks. As of close Friday, these are about $40 -$45, which means I need to have about $4000 in disposable income to buy these. Every 2 weeks, another 4 grand. This is not chump...

The price of the options is expensive, not the share itself. If the share price was less (due to a split), the options would be more accessible. Options can't be split.

Not yet. The reason is that my modelling doesn't handle margin very well. It can't tell if it is about to be in a margin call, so it didn't know to close out positions. After noticing this problem with synthetic data, I realized it didn't make sense to pay for real data until I sorted my...

The reason for the split is two fold. First, to get more retail traders on it. I think most of us here want more people trading it. Second, it lowers the options prices. It seems like the people who have responded so far are all hundred-millionaires and haven't thought about this for...

Sigh, limit order for SPY calls didn't fill even with the spike today. It goes up too fast.

Not really sure how to learn about this stuff without asking questions.

If you don't understand, there's no need to yell. I buy options here the same as everyone else. The options I buy are usually in the $8-$9K range, and on SPY. The price I buy at is a percentage of the notional, so 40K is relevant. Since the price has risen significantly, it's getting...

Very funny, but that ends up being the solution to every question. This thread is really more about understanding what forces are for and against splits, and when do these forces outweigh the other. Thinking about this more: why did TQQQ split recently then? Or SQQQ? Both of them have...

Exchanges win on split, and institutions lose it sounds like you are saying. Why should one be favored over the other? In the case of PHLX, the fee cap would hurt them, since they cannot extract more fees from the higher amount of trading? I'm not sure I understand. As for the...