Options Trading Strategy Hidden Sweep
Hidden Sweep is a stealthy liquidity-seeking algorithm designed to identify options orders that are hidden in the market place.
Trading Objective
Trader looking for a hidden order type that will not post to the market.
Options Trading Objective - Hidden Sweep
If the order is marketable, the algorithm utilizes liquidity-seekingrouting capabilities of the Clean Sweep strategy, however it willnever post.
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► Unique order type where the router controls the orderwithout ever posting to the market
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► Hidden Sweep will continuously evaluate market data to determine if the order is marketable
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► Additional parameters include a minimum volume trigger to activate the algorithm
Trading Example
Buy 250 ABC Mar 50 Calls $1.10
|
Exchange |
SIZE |
Bid |
Ask |
SIZE |
Exchange |
|
ISE |
40 |
$1.00 |
$1.10 |
40 |
ISE |
|
PHLX |
25 |
$1.00 |
$1.15 |
50 |
PHLX |
|
CBOE |
100 |
$.95 |
$1.10 |
100 |
CBOE |
|
BOX |
25 |
$1.00 |
$1.15 |
25 |
BOX |
|
BATS |
50 |
$1.00 |
$1.10 |
100 |
BATS |
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► Total NBO of 240 contracts at $1.10
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► Exchange displayed in order of preference
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► Simultaneously send the following IOC slices: 40 to ISE;100 to CBOE; 100 to BATS
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► Any residual will stay within Hidden Sweep’s router and will not post