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Expect everyone within your broker to be able to see your trades. Expect the brighter ones among them to wonder what you're doing. Don't expect a planned or sanctioned reverse engineering effort. But do split your flow between a couple of brokers if you have sufficient size, and...

The tick granularity can make things interesting from a spread capture perspective, if you're into that kind of thing.

The young ones, to into HFT shops / market makers. More experienced, into hedge funds, although some of these are starting to look more like HFT. Funding from the less informed. As always. Others, no idea. Maybe into recruitment or some other sales job. Selling vacuum cleaners maybe.

Probably different reasons for different people. I'd guess it's the belief that there's easy money to be made, on a flexible, work from home basis. Or maybe the hope of becoming a "master of the universe" at some bank. Not sure that's the reality, although there seems to be a lot of...

Hey -- maybe read the Baird's "Option Market Making", or Natenberg's "Option Volatility & Pricing". You may find that everything's actually priced-in. Better info in the books than on the internet(s). * Some market makers get their rookies to read Natenberg. p.s. The JNK strikes are probably...

Meh .. zip your text file, then email it to yourself. Instant remote backup. & Check the encryption box on the zip if you're nervous about security.

Yes. Got an alternative? Similar policy incentives at all insto brokers as far as I am aware.

Briefly .. you're assuming the call delta remains at 1 on the way down. And, because you're getting screwed on the FDIC insured overnight rate, it "looks" like you're forgoing less interest. Match the terms. How wide was the spread you pay to get out? I think that may be a significant...

Short tem, the spread will kill it. Long term, the interest you *forego* will. You're funding the guy on the other side remember. Net net nothing, but I like your thinking. Better then the average ET directional voodoo magic punter.

To be clear, the IB / Timber Hill relationship does not bother me. While I would prefer to be transacting with naive customer flow, hitting Timberland occasionally is OK, if I need to get something done. Bottom line - the liquidity provided is worth it, and there appears to be price...

haha .. ok, I buy into that. I'd guess that orc liquidator is just on the cusp of being too slow at the moment, depending on the strategy. Speaking of strategy, any tasty clues about what and where? :p

The surviving electronic market makers do have million dollar IT budgets, generally. Everyone else has been picked off to the point of "not worth it" being a market maker, unless they're otc. Have you been living under a rock for the past 5 years? ;o)

Guys .. I find this statement pretty chilling. Personally I have a lot of respect for Timber Hill as a market making operation, and try to not be on the other end of their trades if I can help it. Something about picking your battles.

.. Unless I have misread something .. Example looks "good" as written, but I would be surprised to actually see these prices in the market. This is the sort of thing that market makers exploit very quickly, until it doesn't exist anymore. Nice work in figuring it out though ;o)...

Extremely money hungry, opportunistic without regard to the welfare of others, brutally single minded, strong mental arithmetic although tries to hide it, some applied math / stats knowledge, able to sell or influence others to get a better deal, highly aware of asymmetric payoffs. Never ever...

Take a look at Orc. I'm going to assume that Timber Hill does not use TWS for its options market making, in any way. With TWS, and the IB API infrastructure, data latency is an issue, order routing latency is an issue, and the lack of pricing tools is an issue. Best to stick to...

Honest suggestion would be to take a programming course. Nothing too serious, but enough to no longer have to rely on tools, or on other peoples code. Once you can write your own code, you can do anything. Just comes down to time, and motivation. Build you own code base that you...

You might find that the sum of the large number of small losers overwhelms the sum small of the small number of large winners. Pretty much any backtest of a moving average based strategy will show this same result.

I would love to dedeuce your options, but there are two faults with my server.

"This" is how option market makers stay in business.