Prop options firms

[Maverick74]

Quote from rmtrader:

I can't help but wonder if the few human market makers left in the business will eventually be replaced by machines. I've seen so many job postings for quants and developers who can build automated options market making system. It seems like a natural progression to move the whole MM function to some algorithmic trading platform where the computers do the buying/selling & hedging away delta risk.

Anyway, Vtrader is definitely a firm I would consider joining. I just wish I had other firms to compare with. Besides, the capital requirement at Vtrader is pretty steep. I assume the guys trading there are not your typical fresh-out-of college crew that you find at most equity prop shops? Anyone out there currently trade at Vtrader? I'd love to hear your take on the company & people at this great establishment.

The humans already are out of market making. Most guys just set the vol levels and their software trades for them. They are pushing quotes. The beauty of options vs stock and the HFT's is the way orders are dispersed. If I'm bid for 100 at 1.00 and Citadel is bid for 100 at 1.00 and a 10 lot retail order hits our bid, we each get 5 lots. Citadel has no edge over me in that regard. Whereas in the HFT world Citadel would jump ahead of me and take the order. So these market makers still get the order flow. The problem is it gets divided up among so many different players. So there is money to be made there but it's a much smaller pie.

But to answer your question, everything already is automated.

 

[risktaker]

Quote from rmtrader:

Besides, the capital requirement at Vtrader is pretty steep. I assume the guys trading there are not your typical fresh-out-of college crew that you find at most equity prop shops?

What IS the capital requirement at Vtrader?

 

[Alexxxx76]

Maverick seem to match exactly what you're describing, overnight margin on option spreads.
I've been thinking about joining them for some time now, and will likely sign up with them by end of the year. I've looked everywhere and was unable to find ANYTHING negative. If you guys know of any "horror stories" or really any kind of info on them, I'd really appreciate it, otherwise the place sounds great for my trading style (premium collection/positive theta strategies)