Option market cold reality

Discussion in 'Options' started by NoMoreOptions, Jan 28, 2004.

  1. * Most not liquid.
    * Most give public only large spread bid/ask.
    * Force market orders because limit orders are made just naive and cancel order are charged.
    * Meanwhile "they" mobile on large spread all the time.
    * It's instrument only for "they" or "us" public.
    * Fool public by approviding more markets at smaller strike prices.
    * ... more to come.
  2. vega


    Can't wait...................
  3. Apparently there is a report in the NY POst that the SEC is investigating the major floor-based options exchanges. About time.
  4. vega



    It does seem to be somewhat en vogue now for the regulators to go after the exchanges (great PR for them). I can speak from experience saying that not everything that goes on down there is completely legit, and yes customers do routinely get hosed. However you never really hear about anyone investigating the way the big firms (Morgan Stanley, Goldman, Merrill) screwing the MMs. Maybe what the big firms do to their customers (i.e. mutual fund trading practices). Trust me, not looking for pity on these guys on the floor, but the door swings both ways. Not to mention that any big order is first shopped around before making it's way down to the floor (how's that not illegal ? Goldman has a "customer" that needs to buy 3000 calls, so they shop it around to their other customers and desks first, then go to the market and get a quote ? If I had a dollar for everytime a broker crossed an order before anyone could even bid on it I'd be rich !!!) I suppose that back before the age of multi-listing that there was some serious thievery going on, but no one seemed to be bitching as long as they were making money, but now everyone wants a 10 cent wide market with size, and they're not making millions -- well now something must be wrong !!!!!!!!

  5. ===

    [A] ''most not liquid'' Thats true in many cases;
    another key is do NOT try to invest/trade options like high liquid NYSE stocks.

    [A] Looks like the lawyers are going to settle the honor quotes issue.

    [A] Some brokers [plural] do not , at this time anyway, charge for cancel fees; actually i have a favorable bias toward market makers / specialists including Vega.


    Hey buddy,reread & love Jack D. Schwager ;
    some of those top traders are market makers.:cool:
  6. vega


    Thanks Murray............