According to the Trade Idea Monitor from youDevise Ltd, a trade idea service for institutional investors and brokers, AIG today received the most short sentiment, as the leading sell recommendation from sell-side equity sales reps. We are watching to see how much lower the sentiment will go.
Hello. I just wanted to say, I truly appreciated your little segment on high-frequency algos on the BNN.com website. I had no idea these programs comprised 70% of the total volume… utterly astonishing. I’m young and trade options, and have noticed what I can only describe as someone sensing my orders on thinly traded vehicles. I was wondering if you could explain what is happening in this situation:
Let’s say the spread is .10 on an option, with the bid at .30, and the ask at .40. The option is rather thinly traded, but by looking at the grid the MMs are providing some liquidity and large blocks on both ends. I decide to buy a block at .35. I look at the trade grid. Immediately, once I hit send on my order, the trade grid is filled with not just my single block at .35, but say, 10 more, so the total bid then stands at 11 blocks at .35. This is troubling for me because occasionally, their bids get filled first! Even though I initiated a .35 bid before them, for some reason when it goes to the exchange someone or something tacks on additional blocks which then get priority over mine. What is happening here? How is this legal? Is there any way to fight back?
Thanks for taking the time to consider my question.. I am just a Freshman going off next year trying to understand some of these nuances of these programs that are pillaging my trades.
-Evan Rose