I would be very interested in understanding a little bit more on how selling option premiums is handled at institutional levels. I mean, when you see a big initial selling of a given option who are the players usually involved? Is it more often a single order order or it is combined with one or more options or with the underlying? Any pointer to resources or books that would start me on learning on this topic would be greatly appreciated.
generally with a counter party like a bank’s flow desk. Their orders are typically pre-arranged and come to the floor with a buye and seller already determined.
Very interesting, thank you.I understant that the pre-arrangement of a trade might be a sensitive topic, but may I ask your exprience on this topic come from common knoledge or is related to your work experience?
At Interactive brokers any customer can call the desk in Chicago and they will shop your 500 lot minimum order off exchange. Less for spx.
So if such trades are done off market then are they bought on to main exchange? if not is it just OTC trade with counter party risk
I didn't say they are done off market or OTC. I said brokers call around MMs and institutions to find interest and then execute them on some exchange