Here's something I notice quite a bit. I trade options on the E-mini exclusively. When I bid inside the spread, I see my single E-mini option but at the same time another 20 are tagging along at the same. Am I setting the price? The size of the bid changed simultaneously with my trade trade entry, no delay. also, somewhat of an anomaly some of you might find slightly innaresting - this is second month in row it has happened: I have a small gain for the month of Feb (.91%) yet at NO time was I NOT delta negative. SPX - up about 4.4% for the period. IOW I was short the market the whole time, the market went yet I still had a gain (though the day ain't over!)
The market makers are seeing edge at your pricing, so their automated systems are matching your price. They stay as wide as they can for as long as they can.
1) You are said to be "making the market". 2) You are said to be "tightening the spread". 3) You are "bringing greater efficiency" to the market. :eek:
constant US dollars. there is an answer. see if you can figure it out. also, I meant to say was I was short the market for the full period, the market went UP, yet I finished with a gain over the same period.