Options Trading Strategy Spray
Spray & Smart Route Combines Smart and Hidden functionality and is excellent for SMF Options Traders looking for hidden options liquidity in the market place.
Trading Objective
SMF Options Trader wants to search for "hidden liquidity" or "dark liquidity".
In finance, dark pools of liquidity (also referred to as dark liquidity or simply dark pools) is trading volume or liquidity that is not openly available to the public.The bulk of these represent large trades by financial institutions that are offered away from public exchanges so that trades are anonymous.
The fragmentation of financial trading venues and electronic trading has allowed dark pools to be created, and they are normally accessed through crossing networks or directly between market participants.
Options Trading Objective - Spray
Spray 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 hidden smart routing feature which routes to the preferred exchange and finds hidden orders.
Spray Route Features
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► Evaluates the market once and sends slices to all exchangesto look for hidden liquidity
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► Used to middle the market
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► Any residual contracts are sent to the most preferred exchange
Trading Example
Buy 200 ABC Mar 50 Calls @$1.05
|
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 |
50 |
CBOE |
|
BOX |
50 |
$1.00 |
$1.15 |
25 |
BOX |
|
ARCA |
100 |
$1.00 |
$1.10 |
100 |
ARCA |
-
► Total NBO of 190 contracts at $1.10
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► Exchange displayed in order of preference
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► Send the following orders all for $1.05: 40 to ISE; 40 to PHLX;40 to CBOE; 40 to BOX; 40 to ARCA