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The power of options is mainly in leverage and cash flows. It is a very powerful concept if mastered but grossly misused by dilettantes. Options can be used for income, but it usually means for ever 10k you make in "income" you miss something like 40k if you simply traded the underlier, or you...

I have a short dated option that I would like to turn into a long term synthetic forward. I'd like to do that now rather than wait until the contract expires so I don't expose myself to forward vol. I want to do at t0 (present), option contract sep + forward start option = option contract dec...

Thanks, I also did some research since this is burning in my head right now. It's a CBOE shakedown. https://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2009-009.pdf I feel I can take the trade bid/offer and only quoting one side just reduces my fills by potentially 50%. Tagging orders sounds...

So I saw some things in the market and was able to reconcile one of my old NY4 strategies to retail. Not even using a computer algo, doing it by hand! To my dismay, I find if I try to make markets on options I get an error from my broker: "Order Reject: This account cannot have open orders on...

I work in the biz, I've seen bad technologies from other trading firms, aggregator/brokers are even worse. Even if they have good intention, their hardware and use case won't permit them. One product moves everything else moves at the same time. You need to pay big $$ up front to see what you...

most likely its your broker. Then it's your ISP and the internet. if you want speed get a cable direct to exchange port. or at least run it on AWS near the broker.

Your strategy is constructing a free option for yourself as the losses are financed by the traders.

I think I am offering a pretty unique opportunity. I am a professional developer with many years of experience working in HFT. My experience is basically full stack from UI down to strategy and gateway. I recently received some crypto currency, a product that I have longed viewed as a scam...

The SABR model looks very interesting and S&P is an appealing product. For single names, I don't understand what you mean by fixed strike, beta seepage. Can you clarify? Thanks.

what you have said thus far is fairly generic and obvious. lets get into the meat of the matter. what kind of vol dynamics are you using.

what are the features that define selling vol high and buying vol low?

Assume I have this, what is the strategy?

How does one professionally trade the vol surface assuming they have direct market access to several exchanges (we're talking paying port/session fees) with latencies in sub millisecond and book data for both underlying AND contract series. I'm just curious as to what general concepts are used...

you can't market make effectively on a single exchange. NBBO prevents you from trading when the trade is good and you need access to all major liquidity pools. the main advantage of MM is lower fees if you can transact the volume which I'm sure is mostly negated by IB's value added fees.

yes each exchange is a separate company. they all charge for the overhead of their technology. Opra is not always reliable btw.

Interesting, can you explain more about these delta games and volarb? I like the weeklies because of the European nature and PM settlement.

Is there actual edge in becoming a pit trader in the 21st century? I checked CBOE's webiste and I see that the prices of a seat are within reach for an individual. But how long will it take to make the ROI? What are typical trades that a SPX pit trader does that a small operation can do. How...

What are some of the tricks the pros use to trade SPXW? I hear they basically use low latency methods to arb customer orders on the electronic screens. Does retail have a chance? I have an IB account and I am thinking about trading SPXes for lower commissions.

Most of you people are very confused and I am amazed as the amount of energy you guys have to write nonsense, but it does shed light as to your background and what you spend time thinking on. Long story short: Once you work with pros and see how the money is really made you don't try and...

I will tell you my a short summary of my situation. You can check my post history, I have been working in HFT for many years now. Over time I have accumulated a decent stash of cash that is literally burning a hole in my pocket because I did not have a plan for my money. It got to the point...