Options Trading Strategy Smart
Smart Route Combines Smart and Sweep functionality
Trading Objective
Trader wants to sweep the market and post residual to attract liquidity.
Options Trading Objective - Smart
Smart Route Options Trading is an SMF favorite route because it's quick and easy and combines the sweep features which seek out all available options changes and the smart routing feature which routes to the preferred exchange.
Smart Route Features
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► Routes to preferred exchange first
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► If there is not enough liquidity at the preferred exchange the orderwill sweep across all exchanges at NBBO or the order limit price
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► Any residual will post using smart posting logic
Trading Example
Buy 300 ABC Jan 50 Calls @$.60
|
Exchange |
SIZE |
Bid |
Ask |
SIZE |
Exchange |
|
ISE |
50 |
$.55 |
$.60 |
50 |
ISE |
|
CBOE |
200 |
$.50 |
$.60 |
100 |
CBOE |
|
PHLX |
100 |
$.50 |
$.65 |
25 |
PHLX |
|
AMEX |
25 |
$.50 |
$.60 |
100 |
AMEX |
|
ARCA |
50 |
$.55 |
$.65 |
50 |
ARCA |
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► Total NBO of 250 contracts at $.60
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► Exchange displayed in order of preference
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► Simultaneously sends sweep order: 100 to ISE @ $0.60;100 to CBOE @ $0.60; 100 to AMEX @$0.60
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► The balance of the order will stay within Iceberg router
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► Any residual from the slices will post to the preferred exchange