No and I could be pressing charges cuz that's assault.
Market Makers Approach to Options Trading
- Thread starter ajacobson
- Start date
No and I could be pressing charges cuz that's assault.
Of course they do. I never met one that stayed neutral as a rule.
That's not 100 percent accurate...
Some MM take Delta bets,others skew/gamma/vol bets due to 1 way flow..
Some MM take Delta bets,others skew/gamma/vol bets due to 1 way flow..
I think most of the guys active on floors (non-electronic) are doing gamma/skew/etc,. but from what I’ve heard from guys at group1/Wolverine/etc there can be opportunities by piggy backing on qcc trades. often that can look like a delta view
You mean you can be on the bid and offer at the same time if you are willing to pay for the privilege to be classified as "professional"? Or did I understand this incorrectly?
Fuxx them. I don't talk to them and won't pay their mafia fees. Pay for access? I thought there are laws in place to provide for fair and EQUITABLE markets. Where has that gone?
If you are classified as a "pro customer" you can be on both sides of the trade.
But, there are a lot of downsides with this designation. You will be paying much higher exchange fees. You will lose customer priority at exchanges/products that offer it. Your orders will less likely to be filled with this designation (MM's can see this tag).
Some brokers may not allow you to be on both sides of the market, even if you have this designation.
You will automatically be tagged as Pro Customer if you average more then 390 option orders (not trades) per day in any give month. You will then have this designation for the next quarter.
The CBOE ProCustomer rule has nothing to do with brokerage ProC customer designation. You are effectively a low-power market maker and have responsibilities as such. You'll need a clearing firm or go self-clearing. - not a broker. You'll have to file as a b/d or join one. You will have the expenses of an MM. What I don't know is the quoting requirement. Generally, the most difficult part is building the kill switch. Most of the applications and approved have target SPX or VIX. Focus report and the entire regulatory regiment.