OEX market makers

roncer · Mar 15, 2007

MTE,

I traded futures for many years and became consistently profitable when I switched to the OEX options. There is something about watching the IB TWS futures pricing jump up and down that tends to make me jumpy too. Another example is the SPY. I lose almost every time I try it. In contrast the price movement of the OEX doesn't produce nearly as much emotional reaction and I can use only one small contract if I so desire. So it has just worked well for me.

MTE · Mar 15, 2007

Quote from roncer:

MTE,

I traded futures for many years and became consistently profitable when I switched to the OEX options. There is something about watching the IB TWS futures pricing jump up and down that tends to make me jumpy too. Another example is the SPY. I lose almost every time I try it. In contrast the price movement of the OEX doesn't produce nearly as much emotional reaction and I can use only one small contract if I so desire. So it has just worked well for me.

Fair enough. Please don't get me wrong, I'm not criticizing your methods, just curious.

roncer · Mar 15, 2007

Mte,
Your question is a good one, gets a person really doing inventory. So thanks.

Today traded OEYCG 4 times. Speed of price posting and fills were done very efficiently and promptly. Also I got one fill at a better price then my entry so this MM is doing OK.

roncer · Mar 16, 2007

FWIW:

Traded OEYOH, OEYCF,OEYCG and OEDJ today. And guess what? All the MM's seemed slow, holding back seeking advantage with the orders. Rather dicouraging. :mad:

MTE · Mar 16, 2007

Quote from roncer:

FWIW:

Traded OEYOH, OEYCF,OEYCG and OEDJ today. And guess what? All the MM's seemed slow, holding back seeking advantage with the orders. Rather dicouraging.

What do you expect, it's expiration friday!

roncer · Mar 16, 2007

Mte,

Yep.............no damn good in general. But I didn't know the MM's would be worse as that sure was how it seemed.

rosy2 · Mar 16, 2007

i still do not understand what your issue is. you can post better bids and offers and have those quotes displayed to the world. you are the market maker then. maybe your issue is that no one wants to hit your bids/offers

roncer · Mar 16, 2007

rosy2,

I can't finger out what you are saying either.

rosy2 · Mar 17, 2007

Quote from roncer:

rosy2,

I can't finger out what you are saying either.

i am saying that *YOU* are the market maker. For example, if an ATM call is currently quoted at 4.25 bid / 6.0 offer. YOU can post a better bid at 4.5 and everyone in the world will see 4.5 bid / 6.0 offer on their screen. That makes you the market maker.

roncer · Mar 17, 2007

rosy2,

I am talking about the OEX options and the extreme differences in post and fill times between the various contracts. This implies that the market makers working the contracts are operating differently. Some post your order within 5 seconds others generally take 30 seconds or more. When you are day trading this LAG TIME in posting is limbo country you don't know if you have an entry/exit. You are at the mercy of the MM that is managing the contract until you see your post or fill, etc. Once see your fill you can make your next move. You may want to buy more or enter an order to cover.......the LAG TIME is very important to a short term day trader. And this lag time varies tremendously between the different floor MM's.