More likely, it is a change of experience. I now work for an option market making firm. My sophistication in this arena has exploded. I realize how little I actually knew back then, now being given massively more weight. It may be a diametrically opposed opinion, but it is more likely a hybrid opinion of what I belief to be true then and what I believe to be true now. I may be confused too. That always happens to me when I make big surges in understanding... nitro
No worries. I simply took issue with an ill-informed, somewhat pompous response on the earlier thread. We're in agreement that ES is superior in many ways.
FWIW, I keep going back and forth. Specifically, as B/A spreads tighten, we need to raise our sophistication to get edge. This has been true in every case I can think of, e.g., decimalization. By this measure, SPX options are far "easier" than ES options. I give up. nitro
Well, that's a taking vs market-making argument. I assumed we were talking buy-side position "taking". There is certainly edge in being filled inside the exchange local in any market, provided it's better than fairval. At that point you're babysitting the ticker.
Called IB , looks like it will take a week or so...They say as long as account > 100k. Had a chance to play with the demo , wow ! Two huge winners are long synthetics and short calendars ( as long as position close on or before front month exp), just like I expected. Still no respect for long premium , 100% upfront. apparently IB believes in max pain theory and everything expires worthless right ATM , lol But I do understand where they coming from on this one
Are you serious? What total BS. IB has their head up their ass. They are letting ma and pa kettle leverage short gamma 50 times over but won't give any relief for long curvature traders? That's unacceptable. BTW, max pain theory has nothing to do with it IV. Your margin is a function of two things, your risk and your EQUITY. Your equity will decrease every day by the amount of your bleed. That is already being reflected on the risk parameters. No excuse for this. Oh well. Don't shut down those JBO's just yet.