Options Volume

Discussion in 'Options' started by traderTX, Apr 25, 2008.

  1. Yes I have traded equites and futures for a while, but am somewhat new to options (only previous experience was with covered calls/puts) My question is what is standard volume per trade on high volume issues? (QQQQ or SPY, BIDU for example) I have been matching options trades up with my equities entry system, but am trying to figure out if I can go all in or have to scale in.

    Example: say I wanted to buy a 44 call on QQQQ at X price, and wanted 200 calls, do I need to scale in or will that order size be normal.

    I'm trying to trade while writing this so if you need clarification let me know.....thanks guys,

  2. MTE


    Both May and June 44 calls have several thousand contracts on the best ask so 200 contracts shouldn't be a problem.
  3. were are you getting the data for the total volume on the bid/ask?
  4. is there market depth for options?
  5. There is, but for heavily traded issues like the major indexes you'll probably see hundreds or thousands of contracts right on the bid/ask. Your trades will never make it into the "depth".
  6. False
  7. Just using the QQQQ as an example just about every May series have between 1 and 2 thousand up a side on the markets. Things like the Q’s are listed on all 6 exchanges and there is huge competition for your order flow. You won’t have to give it a second thought lifting the offer or hitting the bid on a 200 lot in the Q’s.

    If for some reason you’re the size of trader who needs several thousand up markets then you really would do a lot better working with a regular floor brokerage firm who can show your orders not only to the market but to off floor liquidity providers.

    No one here is taxing the liquidity of the QQQQ options markets

    by the way I just glanced at the May 44 call its 4 cents wide over 3000 up a side, i bet you could do 200 inside the market 3.06/.10
  8. MTE


    Thinkorswim platform. It shows market depth for options, well, not real market depth, but you can see the best bid/ask quotes and size for each of the exchange.