(I worked in equity options market making in the past)
I'm not sure this is such a good idea.
Professional companies that do equity options market making have major natural advantages over you:
- They are at the front of the line of any order if they're on the NBBO, so they're going to capture the spread
- They get order flow from offline brokers, which tends to be high volume and have higher edge
- They do gobs of volume every day and hope to make a fraction of a penny per transaction.
- A typical market maker makes markets in 500+ stocks at any one time. Good luck doing that on your own.
- They've invested in being as physically close to the actual exchanges as possible so that they can be first to respond
- They're rarely greeks neutral beyond delta
- As registered market makers, they have tax advantages you do not
I'm not sure this is such a good idea.
Professional companies that do equity options market making have major natural advantages over you:
- They are at the front of the line of any order if they're on the NBBO, so they're going to capture the spread
- They get order flow from offline brokers, which tends to be high volume and have higher edge
- They do gobs of volume every day and hope to make a fraction of a penny per transaction.
- A typical market maker makes markets in 500+ stocks at any one time. Good luck doing that on your own.
- They've invested in being as physically close to the actual exchanges as possible so that they can be first to respond
- They're rarely greeks neutral beyond delta
- As registered market makers, they have tax advantages you do not