Books on market makers?

[whitey1982]

hey, im a trader at liquid capital, and am ex imc.

both companies give their trainees 'option volatility and pricing' by natenburg.

 

[hardcoremike]

I sat with an options trader at JPMorgan as an intern this summer and had no idea wtf was going on

 

[rossw]

hey, im a trader at liquid capital, and am ex imc.

both companies give their trainees 'option volatility and pricing' by natenburg.

you went from imc to liquid?
surely that's a downwards move?

 

[cutz]

Hi Guys,

Does anyone have any insight on whether our ASX options market makers are fully automatic computer systems, or is there human intervention involved on the other side of a trade ?

 

[cooper1308]

Hi Guys,

Does anyone have any insight on whether our ASX options market makers are fully automatic computer systems, or is there human intervention involved on the other side of a trade ?

I think a bit of both... Majority of it is automated however there are still traders watching the book.

From what I understand TimberHill & Optiver are more weighted towards automation. IMC, Tibra, Liquid ect all have a little more human intervention.

 

[cutz]

Thanks for the reply cooper1308,

I was just curious because some illiquid series appear to have the human touch.

 

[cooper1308]

Thanks for the reply cooper1308,

I was just curious because some illiquid series appear to have the human touch.

No worries. Stocks with a smaller market cap have different obligations such as wider spreads, only have to quote 60% of the time ect.....

Once I called up a market maker for an FMG series that I couldn't get a quote on....This is how it went:

MM: "which option did you want?"
Me: "FMGxx"
MM: "Buying or selling"
Me: "Selling"
MM: "4c"

I was like What the??....Knowing that was well away from market, so I turned it around

Me: "Sorry mate I mean buying"
MM: "19.5c"

4c/19.5c....

If there was a takeover at a certain level or something of that nature then it is excusable.... but this is jsut criminal.

 

[skyQuake]

If you're really desperate for oppies, but the spread is huge, have a look at warrants. Their spread is generally very tight; but incredibly overpriced. Good for a few days trade at the best.

 

[alphaman]

FMG is a Flex option isn't it? My understanding is that with flex options they don't even have the obligation to provide quotes.

Just trade the US options. You'll forget about ASX very quickly.

 

[rossw]

I think a bit of both... Majority of it is automated however there are still traders watching the book.

From what I understand TimberHill & Optiver are more weighted towards automation. IMC, Tibra, Liquid ect all have a little more human intervention.

where you'd get that info?