Options fill for larger orders questions

Hi Tango29. I'm an X-market maker. I was a small independent player on the AMEX. Very small vs the large MM groups. Size is not a problem as long as there is edge and it can be hedged with the underlying. It is just that simple. Deep in the money options with an hour to go, give me 3 to 5 cents under parity and let me sell stock, I would have bought almost any volume of calls. Open interest to a MM means nothing. I was in the AAPL crowd on the AMEX for almost 25 years. (I also traded other symbols at the same post) The last time I was on the floor was 2010 and we, as crowd, were 2000 up on most OTM calls/puts $0.05 wide. 1000 up on ATM options and 200 to 500 up on ITM options. The problem is when you see penny wide markets from 16 option exchanges and you expect the NBBO, which can be small customer orders, to offer an edge to an automated MM. And, during times of stress, their systems will want to make sure it can hedge, so a 1000 lot might get executed in 5 to 10 lots. Large orders in almost any stock have a market impact. Does that help?
 
Since you just came through the earning and expiration hard data actually exists. Ask your broker for the OPRA tape which will show - time, sales, and conditions. If they can't produce that just ask them for time and sales and it will give you a sense - the OPRA tape would be ideal.
 
Thank you Robert! Yes that does help. I may not chicken out of going larger next time around. The other end of it is getting into the position without driving price and I suppose that has dependent factors also. For my 50 I worked in a 10, 20 and 10, did the same on the way out. I'm guessing I could have gone bigger and not worried too much. Even if the price starts moving I have a cap on how much I am willing to risk for flyers and if it means I don't get my 500 it would still be bigger than any flyer I have played.
Thanks again,
Bob
 
Overnight said:
Will you just shut up with this whole "Imagine making a million dollars in a day shtick"? Jesus!
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A million dollars in the market may be nothing but an absurd dream, fantasy, to you....but it's more real and accomplishable to some.
Others may have loftier, grandier, goals from trading and understanding the market.

Some people on earth are happy...having the time of their lives to play with firecrackers and sparklers....while others may have a desire to want to build a nuclear bomb.

By the looks of your trading journal, and average or lack of success...making $9,000 in the market sounds like a dream, party time, scenario for you, one day.
It's all relative, Overnight Overbite. OY VEy

Overnight, you are too patriotic. that's your downfall. it's clouding your judgement. All you want to see and expect to see....is every senior citizen, and mutual fund, retirement porfolio and 401K plan rising. and everyone eating together for a 4'th of July picnic. the idea of possibly betting down might as well be considered rape to you.
 
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MacBookProHo said:
...All you want to see and expect to see....is every senior citizen, and mutual fund, retirement porfolio and 401K plan rising. and everyone eating together for a 4'th of July picnic. the idea of possibly betting down might as well be considered rape to you.
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If you want to see the opposite, which is for everyone's retirement portfolios being blown-out over the long-term, then you are a sadist. So for the record, I hope you lose all your retirement money and wind up homeless down by the river. You don't even get a van!
 
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