What are some of the tricks the pros use to trade SPXW? I hear they basically use low latency methods to arb customer orders on the electronic screens. Does retail have a chance? I have an IB account and I am thinking about trading SPXes for lower commissions.
Trading SPX weeklies
- Thread starter CashDelivery
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"Pros" covers a wide range, from HF market makers that mainly play delta games against retail to volarb PMs that mainly look at vol and are less sensitive to execution. I would say your best bet is to mimic the latter since you don't have the infrastructure to compete with the former.
PS. why SPXW specifically?
Interesting, can you explain more about these delta games and volarb? I like the weeklies because of the European nature and PM settlement.
Just to clarify, you're inquiring about speed-arb-ing orders in SPX options.
Whoever told you this has never looked at the volumes traded.
Could it be done? Sure. It's possible.
How much of a market could it support? Go and take a look. It'll be you and your Mom.
Could you do it with IB? No. TWS/IB is a fine, fine set-up. But inappropriate.