How to pull the rug on SPX market makers

Status
Not open for further replies.
Quote from ChiBondKing:

Might as well just not trade anything at all.

Fine with me.


You're a huge joke dude... Hilarious. Several people have tried to explain to you what's going on and you dismiss it out of hand. Either a) you're incredibly naive, or b) stupid c) trying to play a game or d) all of the above.
More...

I understand whats going on. Theory and academics aside we are just concerned how to negotiate that wide bid and ask. On 8/16/2007 2 hours before expiration some expiring contracts 100 points away were been shown 0.15 bid x 0.20 asks! Something you would pay 0.05 anywhere else!

People trying to trade SPX are taking a knife in the back. Its none of my concerns how this works, what I am focused on how to negotiate those wide bid and ask and in the wake exposing all these sharks and gators filled in that moat, where you reside.

Good Luck
 
Quote from day7793:

I understand whats going on. Theory and academics aside we are just concerned how to negotiate that wide bid and ask. On 8/16/2007 2 hours before expiration some expiring contracts 100 points away were been shown 0.15 bid x 0.20 asks! Something you would pay 0.05 anywhere else!

People trying to trade SPX are taking a knife in the back. Its none of my concerns how this works, what I am focused on how to negotiate those wide bid and ask and in the wake exposing all these sharks and gators filled in that moat, where you reside.

Good Luck
More...

Did it ever dawn on you that those quotes might be electronic market makers who are REQUIRED to post a continuous bid/offer? As for the pricing, those contracts were priced probably according to theoretical volatility.

So, if you had some of those puts and calls, they're doing you a service by even actively quoting in them in the rare case that you HAD to get out.

You clearly have no idea what you're doing in options, you should stick to something a bit more simpler.

Or, read the rules.
 
day reminds me of an ET member called "NoMoreOptions".

Guy was sure everybody was out to get him. But then, I suppose, with option trading everybody IS out to get you! :p


Good trading to all. :cool:
 
Quote from Option_Attack:

day reminds me of an ET member called "NoMoreOptions".

Guy was sure everybody was out to get him. But then, I suppose, with option trading everybody IS out to get you! :p


Good trading to all. :cool:
More...

:)

i just enjoy pulling his chain...
 
Quote from day7793:

On Thursday 8/16/2007 adding insult to injury SPX calls at least 120 points away 2 hrs before expiration were being quoted at
0.15 x 0.20 ! Imagine the greed and fleecing going on. You would have not paid more than 0.05 cents for this anywhere in the trading world!
More...
If you think the price is that ridiculous why doný you sell a few 100 of those at 0.15? That would pull someone's rug, wouldn't it?

NOT!

Ursa..
 
Quote from MajorUrsa:

If you think the price is that ridiculous why doný you sell a few 100 of those at 0.15? That would pull someone's rug, wouldn't it?

NOT!

Ursa..
More...


You would be able to sell 100 or those?

Do you know how much margin your brokerage firm will need? Its over 1.447 million dollars.

I think you have no idea what we are talking here. You are not an SPX trader.
 
Quote from day7793:

Why don't we just hit mid prices between your bid and asks with ones and twos ? That will lower the devil to your chest.
More...

Mid point is theoretical value and no MM is going to trade at the mid point and give up money. A MM's compensation is the b/a spread and they do not make money trading at the mid point.

Also there are a ton of MM on SPX so your 2 lot order may be used by one MM to fill an order it has but all the other MMs are still keeping their spreads wide so some one like me with a 300 spread order has trouble shaving.

I think you asume there is one MM sitting there on the floor.
 
My post is focused on one objective:

How to pull the rug on SPX market makers.

This is not a world class thesis written on how the market makers works and what are the rules of CBOE and whats the liquidity. You missed my point by miles. I doubt if you trade SPX and know what I am talking about.

What you see on your computer screen is more important than anything else. How do you navigate your boat in or out of there? My post cares less what is academic in nature. I am providing a hands on, shirt sleeves rolled solution to the problem faced by SPX traders who pay heavily with those wide bid and ask prices on given day.

Forget about the wallpaper, look at the room. [/B]
More...

I will take your comment about a world class thesis to be a compliment about the quality of my post. I will put it in less academic terminology for you: You are always getting screwed in the SPX, your strategy does nothing to change that fact, you are inevitably going to get a swift kick in the mommy-daddy button trying to leg the spread, and you would be better off not trading the SPX at all. But by all means keep on "pulling the rug" over there if it makes you feel happy! The real irony is that you will be directly helping to preserve the monopoly you claim to dislike.
 
Status
Not open for further replies.
Back
Top