Hi all,
a topic that I have looked into recently is piggy backing onto large order flows in the options markets. However a large option order can mean anything. Lets look at an example, TRIP had a HUGE put order go into the market today expiring tomorrow. This could be a market maker hedging it's over the counter trade, an institution hedging their long stock position, a vol arb fund looking to get exposure to the option and of course a directional play.
I have access to a bloomberg terminal and can see what options are most actively traded, the time and sales of the option, insider buying/selling, who holds the most contracts, daily short interest, block trades and the largest share holders in the underlying. This info is all public information bloomberg just gives it to me in timely fashion and organizes it nicely.
My question is, people like Jon Najarian seem to have made a fortune doing this in the early 2000's. But how can I get an edge piggy backing on an institution if all of this is public information. ASWELL How would a big buy order of one strike effect the WHOLE vol surface?
Ps. If I was say a close friend to the CEO of TRIP and had inside information, I certainly would not be buying 50mm notional of puts. So can I really find the insider who has a net worth of 10mm and decides to throw down 100k notional on a trade?
a topic that I have looked into recently is piggy backing onto large order flows in the options markets. However a large option order can mean anything. Lets look at an example, TRIP had a HUGE put order go into the market today expiring tomorrow. This could be a market maker hedging it's over the counter trade, an institution hedging their long stock position, a vol arb fund looking to get exposure to the option and of course a directional play.
I have access to a bloomberg terminal and can see what options are most actively traded, the time and sales of the option, insider buying/selling, who holds the most contracts, daily short interest, block trades and the largest share holders in the underlying. This info is all public information bloomberg just gives it to me in timely fashion and organizes it nicely.
My question is, people like Jon Najarian seem to have made a fortune doing this in the early 2000's. But how can I get an edge piggy backing on an institution if all of this is public information. ASWELL How would a big buy order of one strike effect the WHOLE vol surface?
Ps. If I was say a close friend to the CEO of TRIP and had inside information, I certainly would not be buying 50mm notional of puts. So can I really find the insider who has a net worth of 10mm and decides to throw down 100k notional on a trade?
