Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Interactive Brokers / Timberhill -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (7366)	5/2/2007 9:08:37 PM
From: Carl Worth	Respond to of 9012

i agree that increasing the size of the IPO could take some of the fuel out of the market in the short run, though the way things have run of late, and considering the bid for ISE just the other day, it may have no real effect at all...either way, it has zero effect on how the stock trades over time, so unless this is a discussion simply about speculating on the first day pop, it doesn't much matter i have a hard time generating much concern about a 1M possible hit to their profits, considering that they earn more than that each day i think it comes down to whether someone likes the business model for the long run...if you do, you probably aren't going to run away scared if their margins temporarily drop by a percent or two (or even five) during a quarter here and there...if you don't, then none of this matters anyway as for the 30M that "some estimates" think IB missed out on during Q1, that's about as useful as sand in arizona...however, assuming that those same soothsayers are pointing this out as a negative for IB, what happens in this or next or the next quarter when they don't have that many "events" go against them? it just means they have even greater earnings potential...meanwhile, the VIX is 13 instead of 10, so options buyers are paying more premium...i know this is making me more money each month on my spreads and covered call plays...i would have to believe that it's having a far greater benefit for IB...time will tell one time events serve to create opportunities in the stock market...always have, always will

To: RockyBalboa who wrote (7366)	5/29/2007 7:20:51 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 9012

Here are the numbers: As for the lower than expected Q1 earnings due to their option hits. Some estimates put the hit in the 30MM range in Q1 alone, mostly driven by nonlinear developments in option prices... Market Making: Net revenues come in at 233MM vs 263MM (-30MM) NB: option market making rose by 10Mil contracts in Q1. Seen from the DJ example those are significant numbers of contracts (4000 in just 2 series, gaining more than 5MM in value that day alone. Now apply IBs market share of just below 20% then IB took a 1MM hit ... IBs US Option market share is 19.9%.