QQQ Sep Puts

guru said:
@newwurldmn, @taowave , I'm genuinely interested in this topic, meaning trading equity options with risk (not market-making). I was assuming there are plenty of funds and traders trading equity options, indicated by quite large OI & volume on expensive names with underlyings priced over $1K (from SHOP to AMZN).
I think it's common knowledge there are plenty of SPX options strategies being auto-traded (at least when we hear about funds being blown up), but once you have the technology to trade any options then you could expand to equities. And if one guy could make it then there may be others.
So I'm curious what's actually known about various large $billion+ funds in terms of trading equity options? From your comments it may sound like no one touches them?
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Looks like a lot of activity around equity options trading recently:
https://biznewspost.com/tech/a-tale...p-investment-banks-here-are-the-latest-moves/
“A talent war has broken out for equity derivatives traders at Wall Street’s top investment banks”
 
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guru said:
So how many of those tool developers/owners are now billionaires and regretting & cursing for revealing their secrets?
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Very good point. Who would reveal their secretes if they are making money. Not me.... I wouldn't sell a or my system if it was making alpha. What I was eluding too was there are tools out there that can help you to gauge the underlying market activity to a degree to help you make more informed decisions. The market is not zero sum and efficient. You need a system and the right tools equipped with the right mentality to try make bank. Market maker participation in options has grown extensively to the point that you almost need to have an understanding of their hedging activities and weekly/ monthly OPEX and OI to maybe understand if you in negative or positive gamma territory and how the market makers with transact in the underlying. Hence why I said SpotGamma for the market info, Quantdata for option activity in particular dark pools on the NDX, SPX, QQQ and SPY and then Tradytics for options movements and research. These are not one size fit all tools or plug in indicators that will make you cash... they are references to be added or used to help you make informed decisions.
 
Gandalf the white said:
Very good point. Who would reveal their secretes if they are making money. Not me.... I wouldn't sell a or my system if it was making alpha. What I was eluding too was there are tools out there that can help you to gauge the underlying market activity to a degree to help you make more informed decisions. The market is not zero sum and efficient. You need a system and the right tools equipped with the right mentality to try make bank. Market maker participation in options has grown extensively to the point that you almost need to have an understanding of their hedging activities and weekly/ monthly OPEX and OI to maybe understand if you in negative or positive gamma territory and how the market makers with transact in the underlying. Hence why I said SpotGamma for the market info, Quantdata for option activity in particular dark pools on the NDX, SPX, QQQ and SPY and then Tradytics for options movements and research. These are not one size fit all tools or plug in indicators that will make you cash... they are references to be added or used to help you make informed decisions.
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its possible you don’t even need any of those aforementioned entities (spotgamma, quantdata, and Tradytics) at all.

never heard of quantdata and tradytics, downloading TT now
 
guru said:
@newwurldmn, @taowave , I'm genuinely interested in this topic, meaning trading equity options with risk (not market-making). I was assuming there are plenty of funds and traders trading equity options, indicated by quite large OI & volume on expensive names with underlyings priced over $1K (from SHOP to AMZN).
I think it's common knowledge there are plenty of SPX options strategies being auto-traded (at least when we hear about funds being blown up), but once you have the technology to trade any options then you could expand to equities. And if one guy could make it then there may be others.
So I'm curious what's actually known about various large $billion+ funds in terms of trading equity options? From your comments it may sound like no one touches them?
More...

Think of it this way: how much edge do you think statistically is in trading vol? Maybe 2-5 cents a share?

so how many contracts do you have to trade to earn a billion dollars? How does that compare to volume?

Options are zero sum so someone has to lose that billion dollars.
 
newwurldmn said:
Think of it this way: how much edge do you think statistically is in trading vol? Maybe 2-5 cents a share?

so how many contracts do you have to trade to earn a billion dollars? How does that compare to volume?

Options are zero sum so someone has to lose that billion dollars.
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I didn't mean trading vol with tiny profits, but initially referred to the guy who mentioned "tools to read OI in options triggering excessive market moves".
And being able to predict "excessive market moves" means being able to rake in huge profits in $millions per trade, and the tool owners would be $billionaires.

Anyway, the above tools are probably worthless, while trading equity options doesn't mean only trading vol. Most traders aren't in the game of making a few cents per trade, and place huge directional bets.
 
guru said:
I didn't mean trading vol with tiny profits, but initially referred to the guy who mentioned "tools to read OI in options triggering excessive market moves".
And being able to predict "excessive market moves" means being able to rake in huge profits in $millions per trade, and the tool owners would be $billionaires.

Anyway, the above tools are probably worthless, while trading equity options doesn't mean only trading vol. Most traders aren't in the game of making a few cents per trade, and place huge directional bets.
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Oh, using options data to predict future delta moves. I’ve seen studies on it but I doubt the signals are strong enough on their own. There are guys obviously who have made billions doing that.
 
.sigma said:
Wow I’m impressed by Tradytics simplicity yet clean app on iOS, very nice
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Absolutely. Tradytics is an incredible and diverse tool. You can do alot of research on it for your buck. Also Quantdata shows options flows in indices like the SPX and NDX as well as darkpool flows.
Spot gamma is a great source of data info on option moves and market maker triggers... a must have with liquidity charts like bookmap
 
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