I've decided that Knight probably agrees with all of us and is just being contrary to liven up the discusssion. It's the kindest posture I could muster.
You're probably right Def, What do I know? I just live here in the US (not overseas) and trade (day in and day out) for a living. I, along with others, get frustrated when the ISE cuts the market, (holding me to their better price since we are on the national best/bid offer system) and then won't trade it with at least 100 contracts. It finally got to the point where the crowd wouldn't trade on their illusionary markets. Frequently, brokers enter the crowd to fill their public order at the illusionary ISE better price, and when we tell them that the market is bullshit and that it is not where we are, they try to go away and get filled on the ISE. RARELY WILL THE ISE TRADE THEIR MARKET, THEY WILL FADE, NOT TRADE. It makes everyone look bad - the customer thinks that we are trying to screw them and fade. They may blame the broker because "the market was there before, you took too long to execute the order, etc." They don't understand (and shouldn't be subjected to) illusionary markets. There is no depth to the ISE. If you traded, instead of WATCHING/READING ABOUT you would know that. In the words of my old clerk, "it sucks." But thanks for your professional trading opinion, it carries a lot of weight with me... maybe what I'm experiencing in several different issues is a freak ISE anomoly. That has to be what is is, because statistics, witnessing for a whole two days and studies definately are better than first hand experience. The Knight
You're right too Stock. I think I'm out of my depth here. The insight and knowledge is overwhelming... The Knight
Not a big option trader here, but I traded SEBL JAN 03 Leaps on 1/9/02 lifting offers on both ISE and ASE and posting bids on both as well. Volume 328 contracts (at $13 a pop not too cheap ..) I did about 90% of the daily volume. My report: No ISE backing away and did 75% of my orders with them with the largest one at 90 contracts in one shot. ASE backed away all the time when the order I sent was for 50 contracts. I got fills on 10 and 20 but nothing more. No autoex while showing 20 size and an order for 50 was sent in. Offer would disapear. I use RealTick for order routing and must say that I love ISE. Works just like ISLD. At least it did for me. I had the same experience puting on the position. Tony
Hello Tony, I'm glad to hear that you got a good ISE fill. I'm also disappointed that the ASE faded you and wouldn't be stand up. My recommendation for trading SEBL options is to go to their primary market and trade there. Prior to dually listing options, they were traded in only one exchange, and that exchange will probably be where your best markets are. As for fading, I think it's bullshit, whether it's from the floor or from an elecronic exchange. Although my ISE experience hasn't been that good to date, in several different issues, I would like it to be because the fills are quick. Talk with your firm about getting a commission break. We started out paying the same rate as you and had it dropped to .75/ct. Still expensive, but better hedges should pay for the faster fills. Irregardless, good luck to you and thanks for the input. The Knight
ASE sucks... period... 70% of my trades through ASE have been miserable experiences... never again... ASE are thieves.
Our experience with the ASE is pretty much the same as the rest of yours. The ISE has the support of such notables (and friends) as Blair Hull (Hull Trading) to make their markets viable. I am glad Tony got such good fills (double-ouch on the contract costs!!)
knight, what you fail to understand is that have about 15 years in the business and use the same system in Asia that is used in the US. I have a bit more than two days experience with electronic markets. Thus I know that we do not back away. What you see is what you get. I'm glad others experiences are similar to what I have been reporting. Don, I'm glad you know Blair but he sold out you are correct as the guys from goldman do honor their markets. what i've also confirmed this week is that morgan, deutche bank along with timber hill are doing the same.
"We started out paying the same rate as you and had it dropped to .75/ct. Still expensive" Don't know why the retail self-directed online options trading cost still remains such a sky-high level (too much exagerated, admitted). Thinks $1~1.25/ct with minimum set between $2.5~7.5/transaction to be acceptable, after checking CBOE & ISE's fee schedules. I also favor ISE's style too. From 1 to 100 QQQ options, I almost always got instant fills on ISE, though ISE's market share of QQQ options transaction is only about 15% to 25%. And I know I'm routed to elsewhere "BEST" price if I need to wait a little longer. Must mention I prefer to buy the offer and sell the bid, which is normally .05 wide, and only trade the most liquid contracts.