sounds like you don't have portfolio margin. the margin on that trade would be a tiny fraction of $1.4m. anyone trading options without pm is a small-time trader and should not tell others that they have no idea what they're talking about.
How did you assume I don't have portfolio margin? That was for the other guy. You have a brilliant mind. Trying putting me down again. It didn't work at all.
Ahhh the abusive wide bid and ask is back . Take a look at this 8/22/2007 2:00 PM Eastern. SPX Sep07 $1415 PUT SXZ UT Ask 24.50 19.00 â â SPX Sep07 $1400 PUT â â Bid 19.10 17.50 â â This is a 5 point deep moat!
"IB Kevin and Stratergy, Based on your experience, can you give some guidelines on bid/ask spreads for larger size orders, for example 100, 500, and 1000 lots outright and then the same for spread orders? Thanks - appreciate the info." One; It really depends on volatility, delta, and time to expiration, but outright (untied) options are typically .50 wide, and out of the money calanders & verticals are .30-.40 wide. Size doesn't scare the pit much, so the markets are often the same even for 500-1000 up. Some actual markets in the last few minutes w/ ES @ ~1468: Sept 1525 calls $7.00-$7.50 1000 up (screen mkt. 6.30-8.30, 50 up) Sept 1270/1290 put vertical .70-.90 500x100
Oh wise one, please explain to us where you found that the MM has to trade any number of orders at the last bid/ask? You never seem to answer a question, I wonder why. Also, claiming that an option is way overpriced without willing to sell them massively is just a show of ignorant babble. Some n00bs like you are in a state of denial about the prices always being correct as they are. If not, someone would have tried to make a profit and thereby changing that price. If your 'middle' bid gets taken out it is because it is a fair bid and someone wants to trade at that price. No rugs pulled, come on. You can't seriously think that your measly little order changed anything? Ursa..
Why should I answer your attacks? Has that ever occured to you that is deliberation on my part? Now get lost and don't come back , unless you contribute something of value.