Quote from vega:
Vega
Ex-SPX MM
One final note -- Everyone that trades does so because they feel they have some kind of edge that others obviously don't. For the MMs they trade off of order flow and bid/ask -- this is their edge, and for this edge they will make a two-sided market.
You may trade based on technicals or market news moving the market (contrary to popular belief you probably have more access to market news that those on the floor
-- they find out about the news generally when Solly comes in to buy 5000 puts:eek: ) You have to decide how your trying to trade. If you're trading straight vol, you're not going to be able to day-trade vol and beat the MMs (unless your riskarb, lol), if you're taking a longer term position, then you have a chance, but if you're trading delta then pay up or hit the bid you cheapJust kidding, but consider synthetically what price is would be to get long or short an equivalent amount of underlying, and if it's cheaper with options do it, if not -- just trade the underlying outright. If you don't have the funds to get long/short the same amount of deltas in the underlying -- well then you're paying up for the right to over-extend your trading. [/B]
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I like that market makers edge '' contrary to popular belief you probably have more access to market news than those on the floor''
CNBC can be ''noise'' in every sense of the word;
however Art Cashin [Cashin In] is usually in the money.
Art Cashin usually is on CNBC a bout 1;30-137 central time
The spell checker wrongly told me to change ''vega '' to'' mega'';
discretion helps also with the spell checker.