How to pull the rug on SPX market makers

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Quote from optioncoach:

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.
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Thank you for responding to my post Optioncoach. I think you already know what I have posted.

I am not assuming anything. I have knocked on all schools of thoughts and researched all over and everyone told me that it is not possible to negotiate SPX bid and ask. Six months ago I started doing it, it worked. Since than its a routine for me to put my SPX positions mid point or less than mid point fills.

I just hit the mid point bid and ask with one or two contracts and I get filled faster. I have to do it a number of times. If you increase the number of contracts to 5 you will not get filled.

With a 300 lot order you are at their mercy. What happens behind the curtain I don't know.
 
Quote from segv:

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.
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I have already posted several times I have minimized my SPX trading. That way I don't partonize the Castle built by CBOE filled with sharks and gators in that deep wide moat.

You don't " leg into the spread" You place two contract long and two contract shorts. It takes 2 efforts under 5 minutes. It doesn't matter where the market goes, you are only exposed 2 contracts at the most. You can do it one contract each, will take you longer.
 
Quote from ChiBondKing:

Some good tasting crap.. Had Morton's steak for dinner.

Yummay..
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You ate my crap, not the other way around.

You have a problem adjusting after a night out with lipstick painted hookers puking in your lap?
 
Quote from nazzdack:

Morton's has great steak and seafood. It sure beats Outback.
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That guy is full of it. He mentions BMWs , Bentleys, hookers, strippers, Steak dinners just under 2 posts. Than he admits he is tied to the CBOE after intense grilling. He is upset, cause I wrecked his weekend and he has to boast and walk tall to compensate his shattered ego.
 
Quote from ChiBondKing:

As for the pricing, those contracts were priced probably according to theoretical volatility.

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

Or, read the rules.
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Priced according to the greed is more appropiate thing I can reckon.

I perhaps make more money trading options than you do. I don't boast about BMWs, Bentleys, Hookers, Strippers and Mortons steaks. Thats for non professionals to assert their shattered self image.
 
Quote from day7793:

I have already posted several times I have minimized my SPX trading. That way I don't partonize the Castle built by CBOE filled with sharks and gators in that deep wide moat.
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That is good.

You don't " leg into the spread" You place two contract long and two contract shorts. It takes 2 efforts under 5 minutes. It doesn't matter where the market goes, you are only exposed 2 contracts at the most. You can do it one contract each, will take you longer.
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That is bad because you are in fact "legging the spread". What happens when you are trying to fill a put spread, the short (long) put gets filled, and then the SPX moves 10 points against you?
 
How ya doin today?!?!??!?!


Just pullin money out of the ol SPX, opened nicely to the downside...

I narrowed the spread for you, you f'in crybaby :D


-c
 
GO CBOE!!!!!!


bentley.jpg
 
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