Something to Do

Vol #4 - August 28th, 2020

Once you’ve caught the trading bug, it’s hard to shake. When I first stepped away from full time market making, I would get an empty pit in my stomach at 9:30:01 ET. There’s something I need to be doing.

That feeling has come back with a vengeance these past few weeks, and it’s electrifying. With our first few accounts open, requests for trade opportunities can come in at any moment, and we have client objectives to meet.

Market making teaches you the value of precision and focus in trade execution. When you only make a few cents on each trade, every penny counts. Not only do you have to have your valuations accurate, but you want to execute that trade in the most efficient way possible.

Options aren’t just complicated because they’re math-y derivatives, they also trade in a complex marketplace. Routing strategies must capture liquidity and manage microstructure.

When the stock market moves, options markets move doubly and triply fast. This creates temporary illiquidity and slippage costs can explode. Trades executed on thinning markets will eat up significant parts of an options value. The velocity of trading is only getting faster as competitive technology and a volatile information cycle churn the markets.

This means we get to obsess over every single trade. We algorithmically monitor the markets to adjust spread details and squeeze pennies into dollars. We’ve specifically partnered with Tradier for their industry leading brokerage and execution capacity.

Trading excellence is what we’re built on, and just one of the ways we strive to give clients outstanding performance. With the beta group expanding by the day, there is definitely something to be doing.

Please feel free to reach out at any time and consider listening in to a webinar. We’d love to hear from you.

Thanks for joining us,

Mark Phillips
CEO