Option Market Makers $$$

[qazmax]

Anyone know what the average option market maker might be making on the floor these days...

I know there is all types and sizes... but what about the average cautious 20 up market maker, makes safe-smart plays. What kinda of yearly income is this guy earning?

Just trying to get a ball park idea of how the job is perforning these days...

 

[vega]

Quote from qazmax:

Anyone know what the average option market maker might be making on the floor these days...

I know there is all types and sizes... but what about the average cautious 20 up market maker, makes safe-smart plays. What kinda of yearly income is this guy earning?

Just trying to get a ball park idea of how the job is perforning these days...

Hate to break it to you, but to be on the floor now you need to be at least 50 up, more like 100 up to even get consideration for being on a ticket. Haven't been on the floor in 2 years, but "those" guys you referred to probably make 50-75K, depending on what they trade and how much volume there is.


Vega

 

[Weasel]

Had a friend that made markets in the back month contracts of Intel at the Amex. He worked for a major firm and had a 50k salary and was bonused on the amount he made for the firm. He said his best year the bonus was 125k and worst year about 25k. He was laid off about a year and a half ago as were many other market makers. The ISE is killing the other option exchanges. I'm not sure on this, but I think the ISE has over taken every option exchange but the CBOE in terms of trading volume.

 

[riskarb]

There's no money in the equity posts, only in index. Pretty sad, the "local" is becoming an anachronism, all the $$ is made by the large arb firms.

Best money is position-trading in the index crowd.

 

[murray t turtle]

Quote from riskarb:

There's no money in the equity posts, only in index. Pretty sad, the "local" is becoming an anachronism, all the $$ is made by the large arb firms.

Best money is position-trading in the index crowd.

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Sounds right, since the volume is mostly good in the indexes;
Blair Hull is on record as noting 1or 2 of his big losses were takeover related.