How to pull the rug on SPX market makers

[HedgefundTrader2]

Quote from MajorUrsa:

Of course you get filled when you take the middle between b/a, everybody does, that's no secret. All markets work that way, why would SPX be different?


Ursa..

Showed me how dumb you are? Why do you inflict yourself to this kind of answers? You have admitted you never traded SPX, so you don't even know what happens when you trade SPX?

Why are you exercising your puny little brain aganist mine? Obviously you are no match in any form and shape. You have been explicitly told to GET LOST, but like a shameless beast you keep rubbing your head againt a stonewall time and again.

 

[HedgefundTrader2]

Quote from MajorUrsa:



Your misinformation lies in that you claim the MM has to take your bid/offer away because otherwise he is obliged to take all, even very large orders beyond your tradesize at you price. That is what you claimed and that is what you suggest in the title of this thread.
It is pure nonsense and may feed your sense of grandeur, but it has nothing to do with you, it is just how the market works. It is not even certain that the MM is the other party in your trade.
They are not obliged to trade at any price, except the once they post themselves. Their only obligation is that, unlike other traders, they have to post a bid and an ask, and they wisely put it at equidistant positions from the middle, 'fair' price.


Ursa..

Never said that. You are obvioulsy misssing the boat. Forget it, this thread is for those people who trade SPX and not some wannabe SPX traders, who don't know their ass from the hole in the ground.

 

[MajorUrsa]

Quote from day7793:

Never said that.

So what does this mean?

Quote from day7793:

WRONG.

Market makers on exchanges are required by law to show all bids so no one can hide orders and give false bids and divert the market activity. Once you have hit them with a mid price bid or less you narrowed the bid and ask gap , anyone can come hit the bid and gets filled and that can be a institutional player with 200 contracts watching your little daring action. That costs the market maker a lot than your small 2 contract order doesn't it?

And if you din't mean that, in what sense are you "pulling the rug"?

Ursa..

 

[HedgefundTrader2]

Quote from MajorUrsa:

So what does this mean?



And if you din't mean that, in what sense are you "pulling the rug"?

Ursa..

Whats wrong what I said?

Are you on some morphine based County Mental Health plan or something?

 

[cbkswonk]

Quote from day7793:

Never said that. You are obvioulsy misssing the boat. Forget it, this thread is for those people who trade SPX and not some wannabe SPX traders, who don't know their ass from the hole in the ground.

So this thread isn't meant for a SPX eMM (electronic market maker firm) as well?

Get lost you bumbling fucknut.

 

[cbkswonk]

Quote from day7793:

Whats wrong what I said?

Are you on some morphine based County Mental Health plan or something?

The whole premise of what you said is WRONG given the CBOE rulebook you fucker.

READ THE FUCKING RULES AND STOP POLLUTING ET WITH YOUR NONSENSE.

SPEND GODDAMN 40 MINUTES READING THE CBOE RULES. Obviously, you have YET to pass your series 4 and 7.

Until you do, Gary, STOP THE NONSENSE. YOU HAVE NO IDEA WHAT YOU'RE EVEN TALKING ABOUT!

Take that from someone who TRADES THE SPX.

 

[nitro]

Quote from resinate:

I have been trading SPX options every day for over 5 years. Nonetheless, I don't pretend to know every corner of the CBOE rule book.

I would be grateful if you could provide proof, via CBOE rules, circular or other documentation of your idea that a 2 lot retail bid, that is booked and displayed electronically, will obligate the MM to take 200 lots order at the same price- $200 above his posted bid. My understanding and experience is that only the 2 lot would be available at the improved price.

Your not wrong. What happens is exactly as you described it.

nitro

 

[HedgefundTrader2]

Quote from cbkswonk:

The whole premise of what you said is WRONG given the CBOE rulebook you fucker.

READ THE FUCKING RULES AND STOP POLLUTING ET WITH YOUR NONSENSE.

SPEND GODDAMN 40 MINUTES READING THE CBOE RULES. Obviously, you have YET to pass your series 4 and 7.

Until you do, Gary, STOP THE NONSENSE. YOU HAVE NO IDEA WHAT YOU'RE EVEN TALKING ABOUT!

Take that from someone who TRADES THE SPX.

Hey idiot,

Stop using profanities. I can yell much better. You are getting nothing out of it, so beat it.

This post will be reported to the moderator.

 

[HedgefundTrader2]

Quote from nitro:

Your not wrong. What happens is exactly as you described it.

nitro

Read the post again, if you don't understand whats written, move on to another thread. Its been explained a number of times. No more explanations, you sit here and beat the theoretical aspects till the cows come home and sun goes down.

 

[nitro]

Quote from day7793:

Read the post again, if you don't understand whats written, move on to another thread. Its been explained a number of times. No more explanations, you sit here and beat the theoretical aspects till the cows come home and sun goes down.

I read what you wrote. You don't know what you are talking about.

I work for an options market making firm, we are probably the biggest player in the SPX pit. I wrote the order manager software for our firm to meet compliance with Hybrid level 1 and Hybrid level 3.

All that has to happen is that the price in the book has to be honored, and what happens after that is wherever we decide to make a market to meet the rest of institutional demand. Exactly as was explained by resinate. We have a full time trader just trading against idiots like you with orders resting on the book. It is free money, but it doesn't even pay for the drinks at the parties.

Your one and two lots are meaningless. We play with 50 lots just to test our software, and when we are serious, we are making markets 1000+ up on any strike or spread you want.

I am not going to waste any more time educating you though.

nitro