Inside the Mind of an Options Market Maker
- Thread starter qlai
- Start date
Robert Morse
Sponsor
Honestly, as an X-MM, that was weird to listen to. I'm not sure how all that helps a retail trader.
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The interviewer was terrible. He would ask a question and ramble on for an extended period before his guest could answer. I was able to take 24 minutes of this in the 45 minute or so video.
Robert Morse
Sponsor
Come on. With a name like "maximumpossiblesuffering" and a little whisky, you should be good to watch twice.
The whole thing is "nonsense" or particular claims made?
I guess the main point for me was, in alignment with course being sold, that MMs are forced into more of directional trading, which translates into orderflow footprints, which in turn can be used to join them.
He talks a lot (may be in other videos) about "sweepers" that just take liquidity when they feel (or know) the move is coming. I can understand that with stocks, but with options, you got to be pretty quick to sweep (quick as the MM).
I also tried to listen to this and almost got to the end just out of curiosity, because it was so weird. That guy Bryan wouldn’t pass an interview at any market making firm. It looks like Sang Luci just needed any stuff he could come up with for his courses and training materials. There just weren’t any specific points worth discussing, as the whole conversation was a bunch of nonsensical ramblings without any specifics. Snake oil.
Who the hell gave this guy $5MM in margin to trade with? And how does he make money not having any form of automation...still doing everything manually like they did in the 90's.
There's a reason why there are fewer MMs these days. Hard to to capture the bid/ask spread when markets are so tight in so many names, almost choice. You're stuck buying premium all day from retail. You're restricted from selling too many options. And then you're often forced to put on positions you don't want. On top of that if you're "piggybacking" someone else's mass quotes, you're extremely vulnerable to curve manipulation and "spoofing" by the big boys.
I guess if you're one the few MMS for Tesla making ridiculously wide bid/ask spreads all day and are decent at anticipating order flow, then it may be worthwhile.
There's a reason why there are fewer MMs these days. Hard to to capture the bid/ask spread when markets are so tight in so many names, almost choice. You're stuck buying premium all day from retail. You're restricted from selling too many options. And then you're often forced to put on positions you don't want. On top of that if you're "piggybacking" someone else's mass quotes, you're extremely vulnerable to curve manipulation and "spoofing" by the big boys.
I guess if you're one the few MMS for Tesla making ridiculously wide bid/ask spreads all day and are decent at anticipating order flow, then it may be worthwhile.