Does anyone here do any rebate trading with options for adding liquidity? I am interested to hear some different strategies for PFOF.
I have had clients that do rebate trading with options, but it's not payment for order flow. It's the exchange maker/taker system. Some exchanges in the off names pay as high as an $.85 rebate
IMO this has become an extremely tricky game as there's effective internalization in options (so the volume you see isn't really the volume you'll be able to trade) as well as an extremely fragmented market (with new exchanges being added even as volume declines). Rebates are small compared with the risks involved (especially if writing naked).
I disagree. I'm already a profitable options trader without rebates. Rebates greatly enhances the position. Based on the exchange and a conservative multi leg strategies after commissions returns are > 5% at next tick.
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