======= More; Names or nicknames are important; might want to change yours to ''more options'' or ''read more'' Speaking of stocks futures & options[SFO]; might want to read AND APPLY some of Bill Brodsky interview in SFO mag. ========================= MoreOptions , no offence but; do you realize that blaming others is the sure sign of an imature , ill informed trader???
my sincere hope is that BOX blows everyone else out of the water. i want to be able to buy and sell at the same time. i want to be able to cancel an order without exchange-mandated charges. go BOX!
CBOE, AMEX, PCSE, and PHLX need to level the playing field for customers or fade away. Their reaction to BOX so far, has been to make investments in legal resources to keep the status quo. They treat customers with contempt. Even though BOX is far from perfect it is likely to force the floor based racketeers to consider real changes. End cancel fees now! Allow true electronic access to both sides of the market simultaneously!
I like trading with the CBOE. They are one of my favorite exchages to trade with other than the ISE. I don't think pricing in pennies at the BOX will be a good thing, but I guess we'll see.
How many of the people here are using options to trade straight volatility ? I could be wrong but I think that most are using them to either hedge stock/futures positions, or make directional bets. Yet it seems like so many people are getting so excited about being able to make bids and offers at the same time, like it is free money being handed out. If you are a straight volatility trader/scalper, than yes this will help, except for the fact that if you want to be filled on either side you will have to make a much tighter market than is currently being showed. Keeping that in mind, there is not going to much room for error on your hedge if you are trying to stay delta neutral (further decreasing your profit potential). Also keep in mind one of the other great joys of being a professional market-maker--constantly being stuck with a position you don't want, and managing the risk. I don't know what the size minimums will be for having your quotes displayed, but I can barely wait to hear about what kind of games are gonna be played in regards to pennying bids/offers on 1-lots to be the best bid/offer. Keeping in mind that all of the big orders will still be "shopped" around first (and odds are that Morgan Stanley won't be calling you to see if you want to buy 10 of the 5000 they're about to sell , this will only allow the institutions more leeway in crossing their orders (further cutting you out of trades). I'm all for allowing anybody to make a market, just keep in mind that just cuz you can be on both sides of the market, doesn't mean that you'll be able to buy as much as you sell in terms of volatility (at decent prices) or that you aren't going to end up either being stuck with the wrong position, or paying up at the end of the day to get out of it. Best of luck to all who use it, just be careful of what you do with your new toy, think of the famous line from A Christmas Story (I think that's the name of the movie) when Ralphie gets his BB gun for Christmas--"You'll shoot your eye out, you'll shoot your eye out !!!" And I think we all know what happened. New pair of glasses for Ralphie................ Vega
Vega, Although you are probably correct with the two sided markets, just remember the basic principles of the BOX are legit. No cancellation fees and electronic (like the ISE) versus the other models (AMEX, Philly). If you trade enough options on the other exchanges you have seen the numerous games the specialists/market makers play (such as failure to honor markets, option trades ahead, taking a long time to cancel orders, etc.). These are the types of abusive tactics that we want to BOX to eliminate (and hopefully the other exchanges will follow suit).
vega - i'll give one minor example of why i like the bid/offer. you may claim it's fighting for peanuts, but it's a major reason for me. i see an inflection point coming. i sell the options (or buy them) at a limit price, in some kind of size. i get a partial fill. my trade was right, things reverse almost immediately. sometimes *in the same day*, my multi-day target is hit. however, my initial trade is still out there. so, in order to take my profits, i have to: 1) cancel my initial extra size (paying a fee) to take my profit. OR 2) don't cancel, but then i can't cover my trade, because of the buy/sell rule. it's not 'free' money, but hell if i want to pay money because of a crappy rule. i also agree with the other person about getting fills. i believe that (at least on the actively traded options) the addition of BOX will help market participants.