Trading Illiquid LEAPS @ mid

Discussion in 'Options' started by Traveler, Nov 28, 2012.

  1. Any tricks to buying DITM leaps anywhere close to mid? Looking at 2 year BRK/B 60 calls, but the spread is $2 wide. Atticus, I'm at your mercy.
  2. Can't hurt to put something in at mid. The problem will be getting out when you need to get out. BRK_B options are listed everywhere.

    You could offer the option in one account to lower the mid, and then bid the same (in the intended production account) provided you're looking to buy. It works more often than you'd think. Of course you risk getting filled on the short, so don't get too aggressive.
  3. thats some good fishin right there.. the old bait and switch
  4. Thanks, I'll give it a shot. Looking to lever up a little and the implied financing rate is pretty attractive on the LEAPS.
  5. isnt that a tad illegal? a few years ago i was doing the sit on the bid and the ask thing with two seperate accounts at ib and i got a phone call telling me to stop because it was illegal.
  6. Degrees of legality?

    It's a violation of OCC (and possibly SEC) but not illegal. It's a turf-issue. Got to protect the RMMs.
  7. To add; I've done it 1000x and never heard a word about it.
  8. Options12

    Options12 Guest

    Atticus, it's more than a "turf-issue" with respect to violating SEC regulations. Remember that the SEC is a law enforcement agency. If you engage in manipulative trading, then you, and possibly your broker, are engaging in illegal activity.


    Traders placed a bona fide order that was intended to be executed on one side of the market (buy or sell). The traders then immediately entered numerous non-bona fide orders on the opposite side of the market for the purpose of attracting interest to the bona fide order and artificially improving or depressing the bid or ask price of the security. The nature of these non-bona fide orders was to induce other traders to execute against the initial, bona fide order.
  9. A RMM makes a market inside NBBO and it's adding liq.... a customer does it and he's breaking the law.

    How many instances of arranged trades take place during a single day? 1k, more? I deal in qty in (legal) MMing of synthetics to avoid RMM regulations. And yes, I've layered inside NBBO before.

    lol so let them charge me if they can take time away from pron-viewing. I've admitted it, so act. Please produce (it doesn't exist) any action taken against anyone w.r.t. layering of an options contract. You can stick your sanctimonious BS up your ass.

    I was "interviewed" by two female FBI agents back in '92 on an insider trading case.... some asswipe named me as a co-conspirator on shares I'd never touched. Threatened (convened, I believe) a GJ on nothing more than an unfounded allegation by one of the perps. They did apologize, however. No regulatory hit in 20 years of trading.
  10. Options12

    Options12 Guest

    I'm not clear on this. Are you saying that layering when trading options is not illegal, or that you know it is and just don't care?
    #10     Nov 29, 2012