Ageed. I explained a little bit about why this might happen in my last post. This is why I would say that the 1 penny wide market is, in fact,...
Well, I explained that in my last post, but I can give you an example. Consider the Getco dark pool business model. Getco convinces Chicago...
True. Though, you are making a case for market makers, rather than HFT's. Did any of you take debate class in hi school? Remember how it was...
I do disagree with at least some of propseeker's opinions. However, he knows a lot about market structure, and supports his opinions. Therefore...
You knowledge base is obviously in the stock world, whereas mine is moreso in the options world. I am by no means trying to present myself as a...
It seems I was not that clear. I do blame the regulators and resulting market structure. I was also very clear that HFT companies are not...
This is a strange bet. If the calls were a bit meatier, I would suggest that it was a hedged (delta neutral) and a bearish market bet. This...
Ad hominem isn't a "big word", and as you already stated it is used colloquially in a slightly more inclusive manner than its exact definition....
I don't think this is accurate at all. To better undersatnd your perspective, at what exchange were/are you a pit trader? I traded options,...
Funny how it's always the ad hominem jerk who makes the most uniformed statements. This is true for exchanges, but not dark pools. Dark pools...
Well, the author called this situation very accurately. I fear that Thursday's events were somewhat contained compared to what might happen in a...
From everything I have read this situation seems pretty clear. Hi frequency trading has decimated the market making companies. HFT companies do...
If we are only discussing equity options, traders will also exercise their 100 delta puts for cost of carry purposes.
That would be a logistical nightmare, since every trade has a counterparty. The clearly erroneous guidlines are posted in every exchanges...
The VIX cash price is calculated using a weighted average from the first two normal SPX expirations, so as to estimate the 30 day SPX implied...
I read your long winded post. It shows a basic knowledge of options, combined with a lot of confusion and innaccuracies. This statement, where...
Sure thing. And if you don't know anything about the limitations of trading put spreads in a retail cash account, how can you say those...
Not true. I can't say what the implications of trading a retail cash accout are, since I've always traded as a market maker. However, barring...
Negative stock carry rates due to hard to borrow IS the carry rate that the others keep referring to. There is quite a bit of "carry" risk in...
This would only be true if the options are cash settled. Since SPY expires into the underlying ETF, the only difference in the P/L for an assigned...
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