What's the best way to unload blocks of Weeklies without causing price distortions in the Market? If someone was to buy 3,000 contracts of the Apple $113 below $.14 and add to that position until they had 5,000 Calls, how do you sell the contracts without impacting the Option or Stock Prices? Today was a learning experience, using different routing methods, Citadel or UBSS and other guys taking on the option we were selling to who ever bought or sold them. Using KCG I got filled on prices above the Level 2 because people were throwing out Market-Orders. Lots of examples, the Market was $.33 x $.37, put out 1500 contracts at $.35 and 300 at $.37, we had orders hit $.37 even when there was 1000 sitting at $.35, is that bad routing on their Market Making firm? This happen's frequently with these wild stocks, I kept layers on the level 2 seeing people's bad fills turn in to a higher return for us. If you had built your position above 5000 Calls with a cost-basis below $.18, how would you start selling your order once the Calls blow past $.30? We put out 2000 with Citadel at $.35 and those went better than expected. When Apple's Options the $113.00s blew past $.40 we put 1200 out at $.50, that took time to get out of. The next price point was $.63 x $.69 and we put out 1100 at $.65, Citadel absorbed the entire trade instantly. We sold the rest of the Calls above $.70, we got a few hundred off at $.80, 5,000 to 10,000 Calls are not that expensive when you think about it. It's crazy though to try to dump contracts right, what is the secret to getting out of size like 2000 or 8000 Calls, how would you price your order once you have a double or triple? With Apple it's far easier to trade size, last week I was trading KITE with 30 contracts at each $5 price. The $70s to $80s I bought more contracts than 30, these stocks will be $3.80 in the Money and if you put them out at $3.80 they sit. The Market Makers force you to Short-against the Box with KITE's options. How do you sell for your own account or the firm your working with, what's the best policy for Options with huge volume like Apple? Can you share some stories of selling large Option Blocks and how the Market Makers screwed with you or how your size sat even after the stock blew past Intrinsic-Value. Thank you for your time, today was really surreal and I feel nervous being still trying to figure out where I could have done better without playing with larger size.
Most have noticed that if you come in with bid. The market may move against you at first and which point you can put an offer in front of the market and get filled better than midpoint/theoretical.