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...
By a quirk of accidental data, Alphacution dramatically sharpens its estimate of Robinhood's engagement with index options since May 2021; an update that has implications for our overall estimate of retail engagement in index options...
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...
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...
With this update to the Feb 2023 Feed post, "IMC Overtakes SIG," Alphacution proposes that the battle between IMC Financial Markets and Susquehanna International Group (SIG) in US option wholesale market making represents more than meets the eye...
Alphacution provides additional evidence - via Robinhood - that option order routing revenue, the primary source of PFOF, is being negatively impacted by retail adoption of 0DTE option trading - as well as emerging indications of a resurgence in crypto trading...
With latest data in hand, Alphacution shows that the zero-day option (0DTE) phenomenon has contributed to long-term declines in aggregate payment for order flow (PFOF) levels thereby causing a ripple of subtle and not-so-subtle impacts in the market ecosystem...
Returning to a provocative thread from late 2022, Alphacution updates some of Morgan Stanley's latest moves in wholesale market making...
