Quote from day7793:
I am not going to provide you any proof. You are welcome to take this piece and trade better or do nothing. I am not here to cajole you into my corner.
What happens in real life, it is not on the books. This is a practical hands on experience, not read from a book or conceived from a Phd thesis. It comes from years of digging trenches and losing money and making it successfully.
So let me get this right, you are proclaiming to be the expert god in options trading and that anyone else (retail or working on a derivatives desk like I do) are just plain wrong?
Read these:
https://www.cboe.org/publish/DisDecision/07-0049.pdf
"(d) Thirty Seconds Rule. Each responsible broker or dealer within thirty seconds from receiving an order that is greater than the quotation size established by paragraph (c) of this rule must:
(1) Execute the entire order; or
(2)
(i) Execute that portion of the order equal to at least the quotation size established by paragraph (c) of this rule; and
(ii) Revise its bid or offer.
"
...and...
"(6) No responsible broker or dealer shall be obligated to execute a transaction for any listed option as provided in paragraph (b) of this rule 1 when:
(i) Revised Quotation Size
(A) Prior to the presentation of an order to sell (buy), a responsible broker or dealer has communicated to the exchange, a revised quotation size; or
(B) At the time an order to sell (buy) is presented, a responsible broker or dealer is in the process of effecting a transaction in such series of option, and immediately after the completion of such transaction, it communicates to the exchange a revised quotation size, such responsible broker or dealer shall not be obligated by paragraphs (b), or (d) of this Rule to sell (buy) that option in an amount greater than such revised quotation size.
(ii) Revised Bid or Offer
(A) Before the order sought to be executed is presented, a responsible broker or dealer has communicated to the exchange, a revised bid or offer; or
(B) At the time the order sought to be executed is presented, a responsible broker or dealer is in the process of effecting a transaction in such series of option, and, immediately after the completion of such transaction, a responsible broker or dealer communicates to the exchange, a revised bid or offer;
provided, however, that the responsible broker or dealer shall nonetheless be obligated to execute any such order as provided in paragraph (b) of this rule at its revised bid or offer in any amount up to its published quotation size or revised quotation size."
If you have a problem with the way it's working at the CBOE, then why don't you do this:
Rule 9.23. Customer Complaints
Every member organization conducting a non-member customer business shall make and keep current a separate central log, index or other file for all options-related complaints, through which these complaints can easily be identified and retrieved. The term "options-related complaint" shall mean any written statement by a customer or person acting on behalf of a customer alleging a grievance arising out of or in connection with listed options. The central file shall be located at the principal place of business of the member organization or such other principal office as shall be designated by the member organization. At a minimum, the central file shall include: (i) identification of complainant, (ii) date complaint was received, (iii) identification of Registered Representative servicing the account, (iv) a general description of the matter complained of, and (v) a record of what action, if any, has been taken by the member organization with respect to the complaint. Each options-related complaint received by a branch office of a member organization shall be forwarded to the office in which the separate, central file is located not later than 30 days after receipt by the branch office. A copy of every options-related complaint shall be maintained at the branch office that is the subject of the complaint.
