Registered: May 2012
10-04-12 11:03 AM
Quote from FSU:
Good points, but not completely true.
You may find a spread that is offered at 0 edge. Not something a market maker would do, but if it is a position you wanted, you could put it on without giving up any edge.
Quite often there are big traders of certain spreads. For example there is a customer who sells a certain type of spread every week. When I see it in the COB, I put a bid in below his current offer. When he comes down, I will get the trade before the MM as I have a standing bid in.
The biggest problem is the way the CBOE cob is displayed on the web. It is not organized by edge, so you have to sift through a lot of junk.
I agree on both points. I know some traders have access to platforms like WEX that enable point and click of those spreads you want to trade. I just think it is very slow and difficult for most retail traders to enter orders like you say without errors constantly to get executions the way you describe. I'm also wondering if the CBOE enables any kind of delay in what you see from non members over their website.