Options Volume for four instruments

Discussion in 'Options' started by keroppi, Jan 22, 2024.

  1. keroppi

    keroppi

    No problem Quanto. I can have a look at the data when I have time

    @Quanto @FSU @Matt_ORATS or anyone else:
    I have a tricky question for you. I am looking at SPX/SPY/QQQ.

    Would there be much slippage if you enter market order using $1m USD with the ATM contract trading the 1DTE or the weekly expiry?

    As an example, SPY is currently trading at 492.5 as at 5 February.

    How much slippage would you expect there to be if you buy a SPY 492C using market order with 1m USD if the bid - ask is 1.35-1.37 for the 6 Feb expiry or 2.90-2.92 for 9 Feb expiry?

    Would the slippage typically be 1-2 cents or more than that?

    Second question, if you have to break down the trade into smaller lots, what size would you need to enter to get slippage of 2 cents or less?

    I am wondering which contract (weeklies, 0DTE, 1DTE) will have the least slippage for market orders
     
    #11     Feb 5, 2024
  2. Quanto

    Quanto

    Sorry can't answer this b/c I never ever use Market Orders, so I don't have any experience in this.

    But certainly you need to analyse the volumes by taking snapshots every minute (or shorter).
    Additionally it will also be very useful to have Level-2 quotes for looking deep into the orderbook to see how many qtyts are in the queue that could be filled and the slippage could be pre-calculated...

    But you better should stick with realistic goals, as yours are very "outlandish", IMO :)
     
    Last edited: Feb 5, 2024
    #12     Feb 5, 2024