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Strategies & Market Trends : The Options Box

QQQ 624.28

-0.2%

4:00 PM EST

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To: hobo who wrote (9314)	1/27/2001 8:05:04 PM
From: jj_	Read Replies (2) of 10876

Nothing is keeping the MM's from totally running the option prices any way they want with out any regard to compliance issues;there are none. Who's to keep the MM's from putting a $5 by $6 on a option and not moving it during a week of the underlying moving up because they know the next week they can reduce it on a stock pull back and a reduced delta. I've never seen the integrity of the underlying be so out of line with the movement of the options and I really think the exchanges should be concerned with the integrity of their markets. I had a option I bought at .625 go backwards to .375 as the stock moved from 74 to 82. I had 200 contracts and should have booked 20k-30k profits based on how the contracts were moving on Monday when I purchased them but on Tuesday all 5 exchanges had adjusted the contracts back 50% while the stock moved the other way. I said fk it and took a small loss but what I began to notice was the MM's are not moving the options with the underlying this month and when they do even a little they are using a big spreads of $1 minimum. It may be because Feb is a short month with the first Friday starting this week on the 2nd but I just think they are being overly greedy this month and are compromising their credibility to a large degree. there is no other way for me to see it but to look at them as chicken shit crooks to play in a honest market.That's fine,even a crooked market has weaknesses that provide opportunity but I see the option MM's as nothing more than simple racketeering cons. Anyone buying calls or puts this month would be better off just holding off until Feb expiration to see if they tighten up at all. I have calls into compliance officers at all 5 exchanges to put heat on the specialist to clean up their game and I recommend everyone do the same. Believe it or not,options are becoming bigger and bigger business and the powers at the top are very concerned with their reputation for integrity and credibility. This probably sounds like sourgrapes but they wouldn't get away with 1/10 of the garbage they pull on the option exchanges under the grey umbrella of "volatility" on any other exchange. IMO

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