options volume

[rmorse]

A broker finds the buyer and seller of a single option or multi leg spread (sometimes vs stock delta neutral). Then the cross the trade by printing it on an option exchange within the NBBO (National Best Bid Offer). Most larger lots are done this way.

 

[Tom.Leverage]

Thanks for all the feedback. I really just want to know now if you think most volume is made by amateurs or small/private investors or if this is an arena where big players dominate the volume...