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Also, germane to your real argument, but many people would disagree on the value added by Instagram and Whatsapp purchases and the sustainability of growth on a platform with a user base stagnating in size. Hence the price instability.

Yep, so clueless. MMs are not taking the other side of your trade unhedged. If they sold calls on every stock in the NDX, they'd be long all of the underlyings against it as a hedge. They would be massively short gamma and vol, meaning moves in either direction would be bad for them, and...

Are you watching any other market activity at all? Overlay a graph of FB and NQM4 along with the VWAP of FB and get back to me. Also, if there were massive selling pressure in the market, how would that manifest itself in the markets? Huge size on the offer making it harder to push higher, and...

So obvious.

This. I love reading about how I collude with all my competitors and take massive positions during a very volatile earnings period. It's become such second nature to me that I totally forgot that I do it.

Loving this thread. What was "it" that you were trying to do that your broker wanted to stop you from doing further? And please read up on pin risk. If someone sells a lot of options and MMs are long, there will be natural pressure to pin the strike, as the range that the underlying needs...

There is no correct answer as to how MM books are run, as it all depends on how their VIX future position fits into their portfolio. There are numerous ways they could be hedging their futures, so it all depends on how they want to close the trade. In the case of the Feb expiry, the high...

Depends on how you're running your book. If you had a naked VIX future position on as part of a vol bet, the future would roll off and your trade would be closed. If you bought a VIX future and sold options against it, and you do not buy the options back on the HOSS print, your book would be...

The prices that print in the HOSS opening can be vastly disconnected from the first quotes streamed in the day session. For example, there was a slight imbalance to sell today, so you might have had an option that was quoted 10/11 on the open that was sold down to 9.5 in the OPG. In that case...

A cross is when a broker lines up both sides of a trade instead of having a MM in the pit take the contra side. This can come about as a result of facilitation, where a bank has agreed to provide liquidity to a customer, or solicitation, where the broker will shop around for better pricing than...

I think you're misunderstanding what sle is arguing; hedge ratios are referring to the number of futures of one maturity you'd have to be long to offset a position in a different maturity. VXX will lose its value in the long-term because of negative roll yield a typical contango environment...

Keep in mind you're buying options on the August future, which is currently trading around 17.7, so those 14 calls are deep in the money -- 80 delta calls are going to be quoted fairly wide so that market-makers don't get picked off if the market gaps. To figure out where yours would likely...

You certainly don't have to cross bid/ask, but if your order isn't particularly large they're probably not going to be inclined to shop it too hard. What is likely is that they will enter it into the complex order book as a resting order at your price, and announce it to the trading crowd if...

Per the OCC's rules, any options that are at least .01 in the money based on the official settlement price of the underlying equity (as determined at 4:00 PM Eastern on the day of expiration) are automatically exercised, so there's nothing the account holder would have to do.

Keep in mind the above is true for equity options. However, if you're trading weekly options on futures, this may not be the case; ES weekly options, for example, are exercised based on the VWAP of the last 30 seconds before the cash close, and cannot be abandoned or contra-exercised, so you...

Antichrist is a bit strong, but yes, they ruin markets all day long.

Duh, you're right, EOM options settle at 3, not 3:15.

Keep in mind that futures settle differently at month-end than on other days: http://www.cmegroup.com/trading/equity-index/fairvaluefaq.html

Reminds me of one of the few customers who still trades S&P options at the CME. The fund's strategy is to buy the 1 piece in put ratios (1x4s, 1x5s, or similar) for close to even money. By buying a "meaty" 20-25 delta put, and selling enough 5 delta puts to finance the purchase, he benefits from...

If nothing else, just remember: sell a cab, drive a cab.