IOC Stock Price Playbook through Friday...

[admin]

http://seekingalpha.com/article/1069231-...capitalism
http://knowledge.wharton.upenn.edu/artic...cleid=3170

[johnwgrant]

http://seekingalpha.com/article/1069231-...capitalism http://knowledge.wharton.upenn.edu/artic...cleid=3170

Thanks for the links to some excellent articles.   My opinion is that IOC is being pegged at $60 to make money for the options market maker - not for the high-frequency traders.   Although they may be "joined" at the hip to accomplish their feats of financial alchemy.

[johnwgrant]

Just want to express my "disappointment" in the Option MM's: Closed it at $60.15/share. Really !!! Couldn't you have pushed it to $60 even-steven !?!? Better get to work on your algo machine - it needs a 15 cent adjustment !!!

PS: please let me know at least a week in advance the strike price you will peg IOC at for Feb '13 expiration. Thanks !!

[trans]

John, as I recall, and I'll have to recheck, but a few years ago on the switchover from specialists to the new format. Goldman Sachs was the prime mover in this effort. Instead of a specialist for each security, there were 4 "specialists" but their roll was different than the previous specialists. All the original HFC traders were also Goldman for an initial period of time, I believe 6-8 months. Then others were phased in, such as Citadel, and other bigs into these rolls. I would guess that there are 5-6, maybe more big firms in this roll today. So, yes the HFC traders play an integral roll with the marketmakers. This info is not readily available by these players, so you have to make a project out of it. fwiw I'll recheck the above when I get time.

[johnwgrant]

Just want to express my "disappointment" in the Option MM's: Closed it at $60.15/share. Really !!! Couldn't you have pushed it to $60 even-steven !?!? Better get to work on your algo machine - it needs a 15 cent adjustment !!! PS: please let me know at least a week in advance the strike price you will peg IOC at for Feb '13 expiration. Thanks !!

(Aside: is it vanity to reply to your own posts!?!?)

So, the Option MM's forget to tell me their plan for this week:    tank the stock on Wednesday (about $8.00) and let it recover by Friday so that we are essentially flat for the week (with $ bills stuffed and overflowing from the Option MM's pockets...).

Anyone know how to get on their distribution email where they plan their next week's shenanigans?!?!?

PS: Have a great weekend everyone !