More 0DTE Insights: Thing 1 Doesn’t Always Change Thing 2
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...
Ken Overtakes Jeff (Updated)
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...
Public.com Management Weighs In On Options Launch
Public.com senior management reached out to react to Alphacution's recent Feed post, "Public.com Enters Option Fray, With A Twist." Here are some highlights from what we learned...
Case Study: Susquehanna Securities – US Listed Equity Derivatives Share, 2014-2023
In this brief 6-page, 6-exhibit case study teaser, Alphacution presents its estimates for the overall market share of US listed equity derivatives volume represented by Susquehanna Securities, the affiliate of legendary options trading powerhouse, Susquehanna International Group (SIG), that’s home to the group’s US market making operation. This report is presented in the context of Alphacution’s forthcoming case study on option market makers’ share of US listed equity derivatives which will include Alphacution’s market share estimates for Citadel Securities, Optiver US, LLC, and IMC Financial Markets, among many others...
IMC Overtakes SIG – Part II
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...
PFOF Pfizzles, Crypto Sizzles
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...
Public.com Enters The Option Fray, With A Twist
Public.com - the emerging retail brokerage platform that actually appears to be trying to "democratize finance" rather than merely pay lip service to the concept - launched option trading functionality in Dec 2023 with a brokerage model that is unique relative to all other retail brokerages. Alphacution provides context and exposes some fascinating details...
Weekly Options Cannibalize PFOF
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...
Morgan Stanley: Swimming Against The Tide
Returning to a provocative thread from late 2022, Alphacution updates some of Morgan Stanley's latest moves in wholesale market making...
The Transformation of GTS – Part II
On the 1-year anniversary of what would turn out to be Part I of this thread, Alphacution adds new details to the story of New York-based prop trading firm GTS Securities and its emerging adventures in option market making...
