Some call it quote stuffing, I call it an endless supply of paper money to suppress the price and trigger sell orders. It is slowing the price appreciation down big time. Its like hiking up a mountain with a school bus on your back. Case closed.
Again, read on some option theory before you create a video that makes you look stupid. The reason why you see so much volume at 3.05 is due to the nickel increment rule that takes effect in penny options that are worth more than $3.00. $2.98 to $3.05 represents a HUGE jump in volatility (7 cents of time value), and thus everyone including their mother will be willing to sell to you at $3.05. In the context of market-making, the fair value of that strike is probably at $2.99, so if the market makers sold at $3.05, they would theoretically make 6 cents as opposed to only 2 on the bid. And even if there was a significant imbalance in supply and demand, those orders are all dynamic that change with stock price. You would need a static order of incredible magnitude at 3.05 to actually keep the stock price down.
whatever: would you like to see 50-60 other different strikes on the SLV at ANY increment that supplies insane sell order? I can show you if you want. "You would need a static order of incredible magnitude at 3.05 to actually keep the stock price down" Wrong. Flashing orders keeps the bid algos in check, and makes sell algos hit the bid creating a never ending hitting the bid (selling) loop.
Why China's New Futures Market Is Bullish for Long-Term Silver Prices By Keith Fitz-Gerald Jul 25, 2011 10:45 am Asian investors now can buy silver directly on the Hong Kong Merc, ending America's stranglehold on the metal.
The Hong Kong Merc's entry into the silver-futures market is a game-changer for a number of reasons. For one thing, the emergence of a new market player will effectively neuter US elitists like those at the Chicago Mercantile Exchange (CME).
NOTE: Due to Silver Price Live spamming the blog with gay messages to try and attract people to his pathetic site, I have turned on comment moderation. I would suggest trying to spam his blog into oblivion.
These videos are meant to show how manipulators are moving or not moving the ETF options markets via algos and unlimited paper. Nothing to do with how people price options due to some broker stipulating asks in terms of dimes or nickels in their order menu.
I wish they would go ahead and officially raise the fucking debt ceiling so we can get the gold/silver bloodbath over with. They are just trying to cap silver here until that happens so that the "sell the news" crowd will be able to push it back under 40.
It would seem your on 'the right path' as you and your blog are being 'attacked' more often lately. Just ignore the BS (not worth the stress or keystrokes) and keep doing what your doing as its pissing off those your trying to expose!
"Wrong. Flashing orders keeps the bid algos in check, and makes sell algos hit the bid creating a never ending hitting the bid (selling) loop. "
That makes absolutely no sense in the context of options market making. Maybe in stocks you could achieve the aforementioned by playing that game. All that matters in options though is the implied volatility of the strike and not the actual price of it. $3.05 is just a hard offer that for whatever reason all market makers quote in such large volume. You would see the same behavior in any strike on the bids as well, depending on the width of the option market and volatility level. I could add a 5,000 lot to an offer in an option market and it would mean absolutely nothing until the stock price moves and makes my order a good opportunity for someone to take.
Now if you were to actually prove that whatever big firm out there is keeping SLV at $40 by creating a ceiling via the option market, you'd have to show me a couple of things and not just a single strike with standard market making. You would have to show me other call strikes with similar volume imbalance occurring at the same time, AND PUTS having an equally strong volume imbalance on the bid side. You would also have to prove to me that while any one of the call strikes has large volume imbalance to the sell side, there is not a single other call strike that has a large volume imbalance to the buy side.
Now don't get me wrong, I like your blog and like the flavor that you deliver your ideas with. But when it comes to options market making, I believe you are mistaken and losing some of your credibility to the more experienced traders such as myself. I don't know what your agenda is with this blog, but if you do care about educating yourself regarding options pricing, let me know and we could arrange a chat. I have enough experience to show you the actual ways the options market could impact the price of the stock and how the big boys utilize border-line legal strategies to do so.
Okay. All I know is that it goes down when I see this. And today...it went down shortly after this. And when it goes down, there are NO quotes being stuffed with huge amount on the BID side at all, thus validating my assumptions. I dot not purport to be an options pro, by no means as I was an equities trader, but these tricks that are played on options are identical from my equities expereice. If a trend now around the $40 mark, not chance anymore. Let me know if you see these anomolies moving forward at other levels as a 1000% increase in ASK flashed size is not by accident anymore-its there for a reason.
Chinese Silver Investors Bring Suitcases of Cash and Leave in Moving Vans BY DAN COLLINS
It was recently reported in the Suzhou evening news that a local investor in the Nanjing area bought one ton of silver bullion over the counter from a local coin and bullion dealer. The total purchase value amounted to well over $1 million USD. The investor and a team of helpers had to haul twenty small trunks out of the store and into a moving van to complete the transaction. The investors silver bullion was denominated in small 1,000 gram bars. Despite the local dealer being an affiliate of a large state owned bank in China it took the dealer several months to acquire the full amount of silver.
The Guangzhou Daily also reported that another man went into a local bullion dealer in Guangzhou and bought 10 million RMB worth of physical silver. This amount converts to roughly $1.5 million USD. This Chinese investor and his assistants brought in eight suitcases full of cash to complete the transaction.
Welcome to precious metals investing…..Chinese style.
Demand for precious metals in China is skyrocketing. High inflation and a lack of investment options are the main culprits. With new housing regulations bringing housing investment to a standstill, investors are looking for new ways to invest cash. The housing market looks to go down or stay flat and the stock market is widely viewed as corrupt and risky. Physical Gold and Silver are becoming increasingly popular.
Everyone is aware that gold imports into China have been surging. In 2010, gold imports into China grew by 500%. Gold bars in several sizes are now sold through the retail banking chains all across the country. You can keep your cash bank account denominated in paper gold and instead of keeping your cash in a bank account earning a few points a year you can convert it online into paper gold and reconvert back to cash at anytime.
What is less well known is that China’s net imports of silver hit a record high in 2010 with the volume quadrupling to a total import amount of 3,500 tons. This is a major shift as China was previously a net exporter of Silver.
In 2005, China exported silver in the amount of 3,000 tons. China is the world’s 3rd largest Silver producer and yet they have now moved from the sell-side to the buy-side. Before last year the buy side was not that significant of a quantity but a four fold jump of imported silver in 2010 has changed the equation.
In China, Silver has served historically as the main medium of exchange in China. It was an official currency in China as far back as the Han Dynasty (206BC-220AD). Silver Ingots were used to horde wealth and Silver Taels were produced by the government to function as currency or to back a paper currency. The Chinese word for “Bank” is literally translated as “Silver House”
Believe it or not, the Dynastic governments would often over-print the currencies against the national silver holdings which would result in a collapse of the paper currency and a rush back to silver. Sound familar anyone?
Today, local silver and gold dealers are semi-government affiliated companies that often have a relationship with a major state-owned bank. They sell Silver physical bullion in bars of 500grams, 1,000 grams, 2,000 and 5,000 grams.
Not to be left out I myself rushed to the dealers last week to lock in some physical Silver. It was not as easy to order the Silver as I had expected. In the negotiation process they showed me a book full of receipts written for other investors who had already paid for their Silver but had not yet been delivered the metal. They have a huge back log of Silver purchases and are unable to fill demand. And the end of the day, I got to make my purchase and lock in the price. Not yet sure when I can collect. They said they will call me….next month.
Thanks for sharing this with us. People should be aware of what is going on in the world. And you are doing an awesome job in bringing it up. feminin sacre
This comment has been removed by a blog administrator.
ReplyDeleteAgain, read on some option theory before you create a video that makes you look stupid. The reason why you see so much volume at 3.05 is due to the nickel increment rule that takes effect in penny options that are worth more than $3.00. $2.98 to $3.05 represents a HUGE jump in volatility (7 cents of time value), and thus everyone including their mother will be willing to sell to you at $3.05. In the context of market-making, the fair value of that strike is probably at $2.99, so if the market makers sold at $3.05, they would theoretically make 6 cents as opposed to only 2 on the bid. And even if there was a significant imbalance in supply and demand, those orders are all dynamic that change with stock price. You would need a static order of incredible magnitude at 3.05 to actually keep the stock price down.
ReplyDeleteSilver price live: sto pspamming my blog or I will end your short stint here before you even started.
ReplyDeletewhatever: would you like to see 50-60 other different strikes on the SLV at ANY increment that supplies insane sell order? I can show you if you want.
ReplyDelete"You would need a static order of incredible magnitude at 3.05 to actually keep the stock price down"
Wrong. Flashing orders keeps the bid algos in check, and makes sell algos hit the bid creating a never ending hitting the bid (selling) loop.
Silver being collapsed as I watch your vid.
ReplyDeleteIt infuriates me.
Why China's New Futures Market Is Bullish for Long-Term Silver Prices
ReplyDeleteBy Keith Fitz-Gerald Jul 25, 2011 10:45 am
Asian investors now can buy silver directly on the Hong Kong Merc, ending America's stranglehold on the metal.
http://www.minyanville.com/businessmarkets/articles/precious-metals-silver-futures-silver-prices/7/25/2011/id/35928?camp=syndication&medium=portals&from=yahoo
A New Catalyst for Silver Prices
The Hong Kong Merc's entry into the silver-futures market is a game-changer for a number of reasons. For one thing, the emergence of a new market player will effectively neuter US elitists like those at the Chicago Mercantile Exchange (CME).
NOTE: Due to Silver Price Live spamming the blog with gay messages to try and attract people to his pathetic site, I have turned on comment moderation. I would suggest trying to spam his blog into oblivion.
ReplyDeleteThis comment has been removed by the author.
ReplyDelete@Whatever,
ReplyDeleteWTF are you talking about?
These videos are meant to show how manipulators are moving or not moving the ETF options markets via algos and unlimited paper. Nothing to do with how people price options due to some broker stipulating asks in terms of dimes or nickels in their order menu.
Nice work SGS, keep 'em coming!
FM
I wish they would go ahead and officially raise the fucking debt ceiling so we can get the gold/silver bloodbath over with. They are just trying to cap silver here until that happens so that the "sell the news" crowd will be able to push it back under 40.
ReplyDelete@SGS
ReplyDeleteIt would seem your on 'the right path' as you and your blog are being 'attacked' more often lately. Just ignore the BS (not worth the stress or keystrokes) and keep doing what your doing as its pissing off those your trying to expose!
SGS,
ReplyDeleteWhat charting software are you using in the vids?
axis pro platform
ReplyDeleteTX
ReplyDelete"Wrong. Flashing orders keeps the bid algos in check, and makes sell algos hit the bid creating a never ending hitting the bid (selling) loop. "
ReplyDeleteThat makes absolutely no sense in the context of options market making. Maybe in stocks you could achieve the aforementioned by playing that game. All that matters in options though is the implied volatility of the strike and not the actual price of it. $3.05 is just a hard offer that for whatever reason all market makers quote in such large volume. You would see the same behavior in any strike on the bids as well, depending on the width of the option market and volatility level. I could add a 5,000 lot to an offer in an option market and it would mean absolutely nothing until the stock price moves and makes my order a good opportunity for someone to take.
Now if you were to actually prove that whatever big firm out there is keeping SLV at $40 by creating a ceiling via the option market, you'd have to show me a couple of things and not just a single strike with standard market making. You would have to show me other call strikes with similar volume imbalance occurring at the same time, AND PUTS having an equally strong volume imbalance on the bid side. You would also have to prove to me that while any one of the call strikes has large volume imbalance to the sell side, there is not a single other call strike that has a large volume imbalance to the buy side.
Now don't get me wrong, I like your blog and like the flavor that you deliver your ideas with. But when it comes to options market making, I believe you are mistaken and losing some of your credibility to the more experienced traders such as myself. I don't know what your agenda is with this blog, but if you do care about educating yourself regarding options pricing, let me know and we could arrange a chat. I have enough experience to show you the actual ways the options market could impact the price of the stock and how the big boys utilize border-line legal strategies to do so.
Okay. All I know is that it goes down when I see this. And today...it went down shortly after this. And when it goes down, there are NO quotes being stuffed with huge amount on the BID side at all, thus validating my assumptions.
ReplyDeleteI dot not purport to be an options pro, by no means as I was an equities trader, but these tricks that are played on options are identical from my equities expereice. If a trend now around the $40 mark, not chance anymore.
Let me know if you see these anomolies moving forward at other levels as a 1000% increase in ASK flashed size is not by accident anymore-its there for a reason.
Chinese Silver Investors Bring Suitcases of Cash and Leave in Moving Vans
ReplyDeleteBY DAN COLLINS
It was recently reported in the Suzhou evening news that a local investor in the Nanjing area bought one ton of silver bullion over the counter from a local coin and bullion dealer. The total purchase value amounted to well over $1 million USD. The investor and a team of helpers had to haul twenty small trunks out of the store and into a moving van to complete the transaction. The investors silver bullion was denominated in small 1,000 gram bars. Despite the local dealer being an affiliate of a large state owned bank in China it took the dealer several months to acquire the full amount of silver.
The Guangzhou Daily also reported that another man went into a local bullion dealer in Guangzhou and bought 10 million RMB worth of physical silver. This amount converts to roughly $1.5 million USD. This Chinese investor and his assistants brought in eight suitcases full of cash to complete the transaction.
Welcome to precious metals investing…..Chinese style.
Demand for precious metals in China is skyrocketing. High inflation and a lack of investment options are the main culprits. With new housing regulations bringing housing investment to a standstill, investors are looking for new ways to invest cash. The housing market looks to go down or stay flat and the stock market is widely viewed as corrupt and risky. Physical Gold and Silver are becoming increasingly popular.
Everyone is aware that gold imports into China have been surging. In 2010, gold imports into China grew by 500%. Gold bars in several sizes are now sold through the retail banking chains all across the country. You can keep your cash bank account denominated in paper gold and instead of keeping your cash in a bank account earning a few points a year you can convert it online into paper gold and reconvert back to cash at anytime.
What is less well known is that China’s net imports of silver hit a record high in 2010 with the volume quadrupling to a total import amount of 3,500 tons. This is a major shift as China was previously a net exporter of Silver.
In 2005, China exported silver in the amount of 3,000 tons. China is the world’s 3rd largest Silver producer and yet they have now moved from the sell-side to the buy-side. Before last year the buy side was not that significant of a quantity but a four fold jump of imported silver in 2010 has changed the equation.
In China, Silver has served historically as the main medium of exchange in China. It was an official currency in China as far back as the Han Dynasty (206BC-220AD). Silver Ingots were used to horde wealth and Silver Taels were produced by the government to function as currency or to back a paper currency. The Chinese word for “Bank” is literally translated as “Silver House”
Believe it or not, the Dynastic governments would often over-print the currencies against the national silver holdings which would result in a collapse of the paper currency and a rush back to silver. Sound familar anyone?
Today, local silver and gold dealers are semi-government affiliated companies that often have a relationship with a major state-owned bank. They sell Silver physical bullion in bars of 500grams, 1,000 grams, 2,000 and 5,000 grams.
Not to be left out I myself rushed to the dealers last week to lock in some physical Silver. It was not as easy to order the Silver as I had expected. In the negotiation process they showed me a book full of receipts written for other investors who had already paid for their Silver but had not yet been delivered the metal. They have a huge back log of Silver purchases and are unable to fill demand. And the end of the day, I got to make my purchase and lock in the price. Not yet sure when I can collect. They said they will call me….next month.
So I now have an inside contact at [HUGE_NYC_BANK]...
ReplyDeleteWondering how to proceed.
Hope the Chinese buy with both fists!
ReplyDeleteNFLX taking a crap after hours.
ReplyDeletestill short :)
word verification: thypew
HAHAHAHAHA
Thanks for sharing this with us. People should be aware of what is going on in the world. And you are doing an awesome job in bringing it up.
ReplyDeletefeminin sacre