Trading One Million Option Contracts?

Overnight said:
An options question for which you left destriero speechless. You know it was a bad question then, and can practically see him shaking his head while walking away from your post.

The bottom line is...You can't. Shred that paper you traded upon and smoke it in a pipe.
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I had my popcorn waiting for his reply. He definitely did not disappoint! Your reply was solid too!
 
Open an account with a top-tier bank that also makes markets.
You can get a ton of liquidity with time to fill and $Billions.
Your overall friction could easily be $10 on up with market impact.
You'll get massive regulatory scrutiny.
If you're holding till cash settlement, it will save you tons.

If you are really serious. Think about how the liquidity is created and do, at least some of it yourself.
 
Oil Crash Busted Broker’s Computers and Inflicted Big Losses
  • Interactive Brokers users couldn’t trade when oil broke zero
  • Incident will cost firm more than $100 million, chairman says
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Go open a small account with IB.
Then try to trade millions and millions of option contracts.

The platform should stop you from doing it.
If your order gets through, and you suffer billions of dollars in loss,
it seems like you are protected.


The newbie Canadian day trader incurred $100 million loss because
the crude oil price went negative and he was not aware of it.
He didn't have to foot the bill even though he was partly at fault.

______________
 
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ajacobson said:
Open an account with a top-tier bank that also makes markets.
You can get a ton of liquidity with time to fill and $Billions.
Your overall friction could easily be $10 on up with market impact.
You'll get massive regulatory scrutiny.
If you're holding till cash settlement, it will save you tons.

If you are really serious. Think about how the liquidity is created and do, at least some of it yourself.
More...
Thank you for your constructive, well-informed reply.
 
Con1991 said:
Regarding the index options in particular, for which there are no position limits. I am wondering how feasible it would be to buy or sell 1 million contracts of say NDX or SPX. Especially for a retail trader. The main reason I ask this is because I have a scalping strategy in mind, which I have already paper traded. But I am wondering how this could be executed in a live account.

Thanks for any input
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A retail trader trading 1 million contracts?
Add me to the lol-ers group
 
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