How to pull the rug on SPX market makers

Discussion in 'Trading' started by HedgefundTrader2, Aug 17, 2007.

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  1. 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.
     
    #131     Aug 22, 2007
  2. He has no concept of risk based haircuts either.
     
    #132     Aug 22, 2007

  3. 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.
     
    #133     Aug 22, 2007
  4. 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 — —

    SPX Sep07 $1400 PUT — —

    Bid 19.10 17.50 — —


    This is a 5 point deep moat!
     
    #134     Aug 22, 2007
  5. I LOVE MY MOAT! :D

    LUVMYMOAT

    CMON COLLAPSE THE SPREAD WITH YOUR INSTITUTIONAL SIZE BABY

    :D
     
    #135     Aug 22, 2007

  6. I will let you drown in your dirty green water.
     
    #136     Aug 22, 2007
  7. *gurgle*
     
    #137     Aug 23, 2007
  8. IB Kevin

    IB Kevin

    "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
     
    #138     Aug 23, 2007
  9. 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..
     
    #139     Aug 23, 2007

  10. 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.
     
    #140     Aug 23, 2007
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