After weeding out Susquehanna stocks, it generally boils down to the individuals not what firm they are with...I spend time trading a stock to see how the specialist will handle my orders, then focus on the ones I like. Also, I'll never trade with AMEX specialists...
specialist tricks this week
- Thread starter ryanmitcho
- Start date
After weeding out Susquehanna stocks, it generally boils down to the individuals not what firm they are with...I spend time trading a stock to see how the specialist will handle my orders, then focus on the ones I like. Also, I'll never trade with AMEX specialists...
I agree. In some stocks, using a market order is like giving the specialist a blank check. In DJ for example, he'll hold my market order for up to two minutes so he can gauge the stock's order flow before giving me a print. I also hate it when you see size on the Openbook at the inside quote, but the Specialist fades the bid or offer to 100 shares so you can't NX out. Then when you go market, he pulls the bid or offer away and prints you 10-15 cents worse before refreshing the quote with the correct Openbook size at the previous level. Damn crooks!
You just have to try out different stocks and go with the ones where the specialist won't screw you (too much). Or go with the more liquid stocks where you have the option of using ECNs.
ryan: There's a recent thread somewhere here about some specs now having the technology in place to move their quotes in response to the futures. Maybe your specs just got this ability or they are making more automated use of it. I suppose that if I were a spec and I got hit with a flood of program orders every time the futures turned, I'd want to do this too. Unfortunately, it seems reasonable, since they are reflecting the market accurately - it just sucks that they're earlier than they used to be 
I also expect that, especially in the last couple days, the specs have screwed way down on their risk parameters, and try not to be in positions that they don't have to take, because of the headline risk. So, instead of trying to find the other side of your trade and gamble with you, he just moves away and makes sure he gets paid well for the additional risk. I'd expect this to be particularly bad for buy orders - the scuttle is that nobody wants to be short. Someone showed me the specialist short stats, which have come down dramatically in recent months.
I also expect that, especially in the last couple days, the specs have screwed way down on their risk parameters, and try not to be in positions that they don't have to take, because of the headline risk. So, instead of trying to find the other side of your trade and gamble with you, he just moves away and makes sure he gets paid well for the additional risk. I'd expect this to be particularly bad for buy orders - the scuttle is that nobody wants to be short. Someone showed me the specialist short stats, which have come down dramatically in recent months.
i trade 20-40 different stocks in a day (pairs)
good post......i have never traded the pep specialist but i'll take a look at him now. Are there any other specialist you like?
you're busy. I used to have as many as 12 pairs on at once...then collapse at the end of the day.
freezing the book
shuttin down nx
nil improvments
itemizing to screw you
open up quote / print immediately (take it all ) and close, drop quote
ignoring orders
puttin the screwball on market orders
It seems the specialists must be hurting with the lack of institutional participation because they, as a whole, seem to
be getting more "snakey" lately.
shuttin down nx
nil improvments
itemizing to screw you
open up quote / print immediately (take it all ) and close, drop quote
ignoring orders
puttin the screwball on market orders
It seems the specialists must be hurting with the lack of institutional participation because they, as a whole, seem to
be getting more "snakey" lately.
So true, although the words I'd use go beyond "snakey."
When my main focus was listed, this was common all the time. I then learned who the fair specs were and avoided the others that weren't.
Of course, I have always wondered if the "fairness" of a spec changes with the size that the player brings to the table. On the few occassions where I traded size in these "unfair spec stocks," I was always given red carpet treatment, so it is unclear to me...
nitro
Of course, I have always wondered if the "fairness" of a spec changes with the size that the player brings to the table. On the few occassions where I traded size in these "unfair spec stocks," I was always given red carpet treatment, so it is unclear to me...
nitro