Why are there illegal option orders in the orderbook?

[earth_imperator]

Their knowledge is worth more than you can imagine.

I'm of course making use of all information available. But I want to stay independent.

But if you know it all... Why bother being here?
Is it the kindness in you that wants to help the lost souls?

Why not? I'm making discoveries that help me, and I'm also happy to share it for the benefit of all.
My motivation is that such corrupt market practices get stopped, for the benefit of all.
The MM and Specialist System are IMO highly corrupt and needs to be replaced by computers.
I believe I can even demonstrate how the criminals among them are operating, but I'm not finished yet with my research to prove it...

And: did any of the veterans made the important discoveries I presented here? Nope! It was me, not them! So, IMO my knowledge & experience level can compete with even veterans with 50+ years trading experience under their belt. Q.E.D.

 

[cesfx]

I think you are generally looking at the low end stocks, with very thin option market... Stuff where my 1lot order can do the manipulation you are refering to.

If there is no market for something that has a fair value of 1, and I offer it for 17... Market will show 17, because there is no other offers.

Am I missing anything, or am I doing illegal stuff when moving bid and ask with my tiny positions?

 

[earth_imperator]

@cesfx, I made these discoveries when programming my auto-trading bot: especially in the option selection function (ie. scanner/screener) that scans thousands of strikes...
The posted lists with scanner results are just as it, not necessarily trades.

 

[spy]

Their knowledge is worth more than you can imagine.

But if you know it all... Why bother being here?
Is it the kindness in you that wants to help the lost souls?

I think he's deliberately being a heel to get attention.

He even tries to walk back the statement a bit here:

Prices beyond a mathematical limit do violate the put-call parity, so are invalid/illegal.

and here:

I admit it could indeed be a language issue.

First it's illegal, now maybe just invalid. But the dopamine hit from the attention is too good so he goes back to hyperbole. Typical troll behavior; he's not serious.

The only sensible alternative is he's a schlemiel and doomed to perpetual failure.

Either way, the trope is wearing out quickly IMHO. Surprise, surprise, now he blocked me because I pulled back the curtain on his little game. LOL, the only fraud here is himself.

¯\_(ツ)_/¯

 

[MrMuppet]

@cesfx, I made these discoveries when programming my auto-trading bot: especially in the option selection function (ie. scanner/screener) that scans thousands of strikes...
The posted lists with scanner results are just as it, not necessarily trades.

so you had issues with your bot and that's why you go on a bullshit rampage here? Aka. my bot doesn't show proper results because those bad MMs are posting min bid/max offer?

 

[earth_imperator]

Bye, @spy! Enough is enough! You are not interested in a constructive on-topic discussion but in personal attacks by nitpicking some words like invalid/illegal as argument and riding on them. You poor soul!...
And: please refrain from posting in my threads anymore. I don't need you as a discussion partner.

 

[earth_imperator]

so you had issues with your bot and that's why you go on a bullshit rampage here? Aka. my bot doesn't show proper results because those bad MMs are posting min bid/max offer?

Hmm. yes, you are right! So, what's wrong with it?
Yes, I indeed blame the MMs for all the said problems, b/c it's the fact as was proven with real data.
B/c of them I had to add more code to my program to fix their criminal mess.

Before this discovery a few days ago, I never would have questioned that Bid/Ask/IV ever would be so buggy and manipulated. I was thinking the exchange computers would not allow it, much like my broker does not allow it. But unfortunately the exchange does allow it, and the MMs take advantage of it (and only them can do it!) to cheat the less informed retail traders...

 

[spy]

Bye, @spy! Enough is enough! You are not interested in a constructive on-topic discussion but in personal attacks by nitpicking some words like invalid/illegal as argument and riding on them. You poor soul!...

Good riddance.... like I don't know how to browse without being logged in and copy identifiers by hand. What a d-bag!

You can't block the fact that you're a desperate nitwit.

 

[MrMuppet]

Hmm. yes, you are right! So, what's wrong with it?
Yes, I indeed blame the MMs for all the said problems, b/c it's the fact as was proven with real data.
B/c of them I had to add more code to my program to fix their criminal mess.

So perhaps the issue is your shitty coding and the fact that you don't know what you're doing???

 

[earth_imperator]

So perhaps the issue is your shitty coding and the fact that you don't know what you're doing???

BS! The problem lies in the buggy/illegal/invalid data created by the MMs as was proved in previous postings.
Retail traders cannot place an order where the price is above the maxpossiblePremium, only MMs can do it... Q.E.D.

I'm glad that now everybody around the globe, especially trading firms, are updating their programs to include the important results of this discovery... :--)
It certainly will lead to narrower Bid/Ask spreads and lower IVs, as well less profit for those criminals among the MMs...
Mission accomplished by me!