Donkeys are illegal to have on a public thruway in NYC. I have a CBOE 34 year anniversary button and a champagne glass from them, so that must imply that I am a sympathizer hilarious. Have a good Saturday.
Since the spreads are so horrible on this relatively popular contract, why aren't third party scalpers moving in and making a tighter market?
One of the many silly ideas in this thread is that the only available prices are what is available on the screen. SPX is among the most active pits and is populated with many market makers- however, only 1 can stream electronically displayed quotes. Other MMs can post bids or offers as well as take the other side of outcried orders (any order sent in between the posted bid or ask) in the pit without displaying orders.
CBOE has built a Castle encased in a durable moat around it. The moat is very deep and wide. It discourages competition and efficiency and SPX is an enduring market advantage revenue stream that will last for a while. It also means you will be screwed if you happen to trade this product and will pay through your nose with horrible gouging in bid and ask prices. Ironically, its the kind of businesses that I buy and invest in equities markets.
Me and the Bentley made it home in one piece! Sooo.... gents, pay on up Monday AM with a 5 pt SPX spread, cause I dropped a few hondos out at the bar tonight..... Sad times for Deutche Bank... Too bad the old building at the WTC site burned... Oink. CBK, CBKSwonk
Did your hooker puked in your lap? What kind of man goes out to strip joint on Saturday night after 34 years at America's worst trading place ? It must be a CBOE market maker with no balls. Come Monday morning your life is going to be a little tougher. There has been nearly 1900 view on this post, lets say 10% people used this STRATEGY while trading SPX, you will be dealing with a lot of narrow bid and asks in your craft.