What kind of players are they?

[LucasX]

Quote from xflat2186:

Options can be crossed at any price with the high and low of the day. SO you may see 10k trade at what appears to be the ask at the time but those may have traded earlier and be linked to stock or other options and have nothing at all to do with what the market in those options at the time they hit the tape was.

The bottom line is you just have no real way kf knowing who initiated the options trade, what side they are on or why.

What do you mean by crossed at any price? Could you give a simple example?

 

[MTE]

Quote from LucasX:

What do you mean by crossed at any price? Could you give a simple example?

A cross trade is when a broker crosses the two orders internally (i.e. a client was buying 10,000 calls for X and another client was selling 10,000 calls at the same price X) and then reports it to the exchange. So the point is that there is a time delay between the trade and the print on the tape, hence the trade price has no association with the market quotes at the time of the print.

 

[LucasX]

Quote from MTE:

A cross trade is when a broker crosses the two orders internally (i.e. a client was buying 10,000 calls for X and another client was selling 10,000 calls at the same price X) and then reports it to the exchange. So the point is that there is a time delay between the trade and the print on the tape, hence the trade price has no association with the market quotes at the time of the print.

MTE, thanks for your explanation. I dig a little bit in OPRA tick data specification. And I had a question for you.

Say paper received two orders from same client and was asked to do cross trade in two accounts both belongs to that client. Paper didn't go to floor and there are no locals involved. There is a delay as you said to print those two trades on tape. Ok, my question is what will be showed on tape for that cross trade? What will be showed in tick data from live datafeed? Are those two things same?

 

[dagnyt]

Quote from LucasX:

Mark, it's my pleasure to discuss and argue with you. I learned a lot from you guys.

Rookie Lucas

Keep posting questions.

Mark

 

[MTE]

Quote from LucasX:

MTE, thanks for your explanation. I dig a little bit in OPRA tick data specification. And I had a question for you.

Say paper received two orders from same client and was asked to do cross trade in two accounts both belongs to that client. Paper didn't go to floor and there are no locals involved. There is a delay as you said to print those two trades on tape. Ok, my question is what will be showed on tape for that cross trade? What will be showed in tick data from live datafeed? Are those two things same?

A cross trade will show up in time&sales data with a condition code attached to it that it was a cross trade. I know on bloomberg you can see the condition codes, but I would imagine not all services show this.