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Are you straight out dumb? He sold a 5$ put. Most he loses is 950k+fees if it goes to zero. It's not unlimited risk.

I would also like to say that these figures are most likely BASE salary. You will also get a bonus for performance.

Your short call should almost never be assigned until expiry. There isn't a div from now til Jan. No huge short stock rate either. You should only be assigned at expiry.

IMC pays closer to 70-80k for incoming junior traders which I think is quite ridiculous for a greeny straight out of college. And that is base salary.

Please refer to the ISE rules: https://www.ise.com/assets/documents/OptionsExchange/legal/rules/rules.pdf pg 119/120. I do not know your specifics so I cannot comment.

You most likely are seeing one leg of a spread (spreads can trade at penny increments). There is PIM (price improve mechanism) on some exchanges (like the ISE) but that really hasn't caught on. My guess is spreads!

Okay. I just saw this thread. I've MM'd many indices in europe and usa for my firm (SPX/RUT/DAX/IWM/SPY included). XFA is a good brokerage to work your SPX orders. Don't really need to look for anyone else. If I had to choose US index product for some "income generating" trades, it would for...

No, this doesn't really happen. First, the MM would have to buy .01, but as you know, customer orders are executed before mm's. So, if someone sold .01 then the customer will buy it first. The only way the mm could buy .01 is through a cross on the floor or bid .01 on other exchanges where...

To name a few: IMC Chicago, CTC, Citadel, Timberhill (IB), Optiver

IMC's test is more like an IQ/aptitude test than a pure fast number cruncher test. They are electronic option mm's for the most part. GL

Your option price deteriorated mostly due to a crush in implied volatility. I believe the atm vols dropped around 12 pts. Skew also came off a decent amount. For bidu, if you believe the stock will move in the short term, try selling a calendar (front month vols are well below the mids). Long...

First off, the errors. Your position is short every option. So it might be easier to think of your position as -3 730 calls (8d) -5 570 puts (-7d) -1 590 put (-12d) : So, your "real" delta position is as follows (assuming your d calcs are correct) -3x8+(-5x-7)+(-1x-12) =...

If you don't mind me asking, what was the size of the order and which exchange did you route the order through? You should be filled at very decent prices on the RUT. I can take a look at it tomorrow and let you know why/if you might not get filled.

It seemed like a lot of traders unwound their credit spreads on friday for a loss. I hope they come back soon, vols are so high right now :)

Curtains, Did you have the final interviews with either company? If so, did you receive any job offers yet? Good Luck!!

Off topic, but Deep ITM european options have a "negative" theta. Look at all the Index options that are european. NDX, RUT, XEO, STOXX, ect. Oh, and on topic... You are creating a somewhat synthetic call because the underlying portfolio you are hedging is not perfectly correlated with the...

Actually, that's not entirely true. Yes, they will cross the trade on the floor. But, the "They may or may not let the market makers participate." is not. The floor can block any trade they choose and will usually ask for a cut of big block trades.

1. If the MM is buying/selling at bad prices the MM will be gone. MMs wouldn't quote prices that do not have enough edge to be profitable. If trading correctly, MMs trade at Advantageous prices so MMs will make money. Retail trades at Disadvantageous prices. 2. Being short calls and short puts...

The MM will evaluate the risk and act accordingly. Let's say that the MM did not have a position beforehand, then the MM will try to hedge the upside risk. The simpliest hedge would be to adjust the MM's theoretical values of "similar" options upwards and would try to be a buyer of "similar"...

Definately look into the RUT for ICs. I'm not sure exactly where you route your orders but either the CBOE or the ISE should provide fills around theo. You almost have to give up some edge but you never know when some MMs have positions on the opposite way, especially if the underlying has moved...