Options Orderflow

[xandman]

Make sure your execution system is up to the task.

For intraday trading, you need a market maker platform that can do a sweep/scan of the skew and execute an automated order. Livevol fails in this regard. The mispricing is fleeting in liquid names. Additionally, you are competing with the mm who can make 2 sided markets and access dark pools. A terrible disadvantage.

With a basic brokerage platform, you will manually find mispricings in illiquid names. But, trading and hedging that position will lock up your capital for an incredibly long period of time. You will be holding a .10c scalp for the full 30 day expiration because you are in an illiquid product. Thus, lowering your ROI.

 

[2rosy]

What service allows you to do this?

Time and sales. Every feed provides this

 

[masudhossain]

Make sure your execution system is up to the task.

For intraday trading, you need a market maker platform that can do a sweep/scan of the skew and execute an automated order. Livevol fails in this regard. The mispricing is fleeting in liquid names. Additionally, you are competing with the mm who can make 2 sided markets and access dark pools. A terrible disadvantage.

With a basic brokerage platform, you will manually find mispricings in illiquid names. But, trading and hedging that position will lock up your capital for an incredibly long period of time. You will be holding a .10c scalp for the full 30 day expiration because you are in an illiquid product. Thus, lowering your ROI.

What platforms allows one to make automated orders? And as far as receiving information for the options orderflow, i am using a 3rd party program/website that does it for me. I have to be manually looking at the orders and execute my trades. I assume that i would have to enter in the trade within minutes to take full advantage of it.

 

[xandman]

Orc, Actant, Optioncity, Derivix, Silexx, Wex, Blaze, Spiderrock etc etc

If your going to trade order flow, you really access to the routes and timeley executions. Opportunities are few and fleeting.

Just yesterday, I had the this guy bidding a 10 lot deep in the bid/ask. Greedy little me, I put an ask in front of him to squeeze another nickel. MMaker took it instantaneously.

Do I want to spend my day manually looking haggling for these small plays? Heck no. That's why fintech developers get paid big bucks. You either find the big orders fast or automate the small ones across an incredibly big universe.