No, nothing to do with you - a mod stopped me posting in another thread where some idiot was trying to say he could teach people real fast how to trade - he sounds like a russian con artist to me, and I let it be known. Anyway, OG got my interest in the Friday Expiration thread - join in, as I think OG might be one of the very few here that actually knows what he is talking about - don't mind the idiots posting there, as our main objective is to make money, not listen to Gobshites J_S
FWIW I have always suspected that OI would give a good idea about PIN risk and often the big players will ramp up the index(FTSE in the UK) to get out of their short puts-but they are smarter than to play the same game every expiry, plus OTC volumes far outstrip exchange traded options. Last expiry was a case in point in the UK,a 2.5% jump just for the expiry auction
It is still on the list of things to try and work out - what might help greatly is if we could get the net positions for traders, as in, what exactly are the MM's overall risk at the relevant strikes - I don't think it is straightforward to find out, but if anyone knows then please let us all know - I don't mind saying I haven't a clue - which is why I am asking. J_S
I am almost always able to trade at the next increment above the mid when it is a true mid, i.e. the market makers are on both sides and there isn't a retail order parked inside the spread. The posted spreads are useful only to get the mid, they are in no way indicative of the spread you'd pay unless you use market orders. (or get autoliquidated by IB!). BTW, how is a big spread good for sellers? Good for market makers maybe but unless it's somehow asymmetrical around what you think the fair value of the option is, it would impact you equally as a buyer or seller.
Nope, in fact, the site has to be the worst trading site out there at the moment! I think dbphoenix owns it J_S
Time to get back on track. Let's see where we expire - as of now it is only going up, but will it fall back before close? J_S