i am metaphysically a call option and i will maximize volatility
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Replying to @tszzl
drew Retweeted LSF
Will never pass on a chance to post this lmaohttps://twitter.com/lightspringfox/status/1408122316295311362?t=ghLGKOvXGd4ihnWnY0L8vA&s=19 …
drew added,
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I will pay someone to walk me thru this meme omg
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Replying to @_StevenFan @tszzl
Options market makers have some pretty sick advantages provided by the exchanges that let them be a lot slower than their counterparts in equities
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also the spreads are thicc, as already noted
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O dang So is this pointng towards a physics-modelers Vs taleb style risk-smart, market-smart Culture split too?
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Replying to @_StevenFan @tszzl
has more to do with the computational reality of having to constantly price the options chain, there are ~1M listed options but only ~5000 US equities, in an effort to make the business economical for options market makers, exchanges give them tools not available in equities
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an example of this is purge ports, something unique to options, they're a dedicated connect that skips the regular message queue so that MMs can kill their quotes en masse, no such thing exists in equities. here's a doc for the CBOE purge port for example: https://cdn.cboe.com/resources/features/Cboe_USO_PurgePortsFAQs.pdf …
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this implies that while an equities MM has to care a ton about making sure their quotes are super up-to-the-microsecond recent so as not to get picked off by an aggressor on-exchange, the options MM can just kill and reprice the whole chain if they think they'll be picked off
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disclosure, i am not an options MM by profession so perhaps take the above with a grain of salt, i have only seen this from the buyside/"end-user" POV myself
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@theemilyaccount to factcheck/own me on any mistakes above lol2 replies 0 retweets 8 likes -
kill whole chain expensive. options MM a lot more about exchange pricing from my experience
3 replies 0 retweets 11 likes - Show replies
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