Guest contributor and option trading specialist, Don Dale, makes a case that the current historical level of US equity market concentration represents a structurally and economically advantageous time to act with derivatives...
Alphacution adds new perspective to its retail option order flow analysis; develops model to estimate retail option order size (in contracts) by order type and broker. Bottom line: "Frictionless" trading caused total retail option orders to maintain a level that is at least triple that of late 2019...
Alphacution provides its Q1 2024 update on the retail customer share of US equity option volume - including new data from Tradier, eToro, and Public.com - along with a teaser for our comparative model on option DARTs by broker...
As promised, Alphacution provides an analysis of Public.com's first official months after the launch of its option offering to customers, along with a comparison of critical stats with other retail brokers. As a bonus, this Feed post also found its way into a deep dive on average option PFOF rates by broker, with specific findings on Tastytrade...
Alphacution compares the two largest players in US equity options - SIG affiliate, Susquehanna Securities and Citadel Securities - based on a 10-year period of allocations to single security options (SSOs) and equity index options, including indications of scale variance, key factor preferences, and strategy shifts...
In this Part III, Alphacution concludes its multi-part analysis of Susquehanna Securities' so-called "arbitrage strategy" by sharing some revealing - if not, conclusive - comparisons...
In this Feed post, Alphacution updates an analysis of Susquehanna Securities - the primary risk-warehousing affiliate of legendary options powerhouse, Susquehanna International Group (SIG) and the place where the largest piece of SIG's global market making operation resides - originally published in Dec 2020. Now, more than 3 years later, Alphacution adds significant new color to that analysis - including 12 charts - and sets the stage for a much more nuanced understanding of the broader group of option market makers...
Using SPY option positions to make a case, this Feed post is a status report - of sorts - for Alphacution's development of a model to estimate individual market maker's shares of US equity option volume. At least we have a (mostly completed) list of the candidates...
Alphacution publishes new charts comparing SPY options, SPX options, and SPX futures options to illustrate the blessing - and curse? - of the 0DTE phenomenon, reliance on retail investors, and market concentration risks...
Citadel Securities overtakes Susquehanna Securities for year-end 2023 by this metric. Problem is, there's an asterisk. This Feed post is excerpted from research for Alphacution's long awaited case study on option market makers...
