synthetic....i rest my case in dealing with dim wits on this site. I will keep my journal here until doubles but wont sprinkle actual knowledge on anymore posts which is clearly just a waste
to take it a step further there actually are designated market makers at the cme in the es options but the word synthetic as i used it in my more than ample statements implies that the cme does not give "exchange mkt maker" status to es futs but they do for the options however soon all of this will change because hft needs to continue because most of the cme large share holders administration and board members are parrt owners of hft firms
Gotcha! But MMs and HFTs are 2 different kind of beasts. They do not trade with the same goals and strategies.
It's funny, 20-25 years ago (when a 500 share trade of GE could cost $50-90 in fees), I use to trade this way. I think I will go back to this style much more. If I am trading a large volume stock (QQQ), sit and wait. I can wait hours/days on this...I really can. The problems occurs when I trade thinly traded stock. I wish to buy the stock, then sell a covered call within minutes...Trying to lock in a given profit, if it were to get called away. If the stock is dropping, I want to grab that "sell to open" to secure 'some' income while it wait. But many times (since I believe in the stock to begin with), I should just wait and hold. I need to be prepared to ride it out through a recession. Just talking out loud...Take Coke. I can buy it (at the right price). It has a fair dividend. Do a covered call (on my terms). If the price drops...I do not think the company is going away...Ride it out. As the stock rises...Do the covered call and enjoy the profits (covered call money, dividend, compounding interest). Thank you for the idea of patience (bid/ask). For a small trader it can be a virtue.
you just need a better entry. one that has a lower chance of getting stopped out. otherwise trade options or dont use a stop which is not a good idea. therefore, find better trade entry.