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Case Study: US Equity Option Market Makers – Core Strategies and Market Shares, 2019-2023

In this 187-page, 213-exhibit, 45,000-word case study, “US Equity Option Market Makers: Core Strategies and Market Shares, 2019 – 2023,” Alphacution publishes its most comprehensive analysis to date based on the modeling of 17 proprietary trading firms who serve variously as market makers in US equity derivatives across the backdrop of 5 interconnected product classes in futures and options. The objective of this research project was to shed new light on US equity option market mechanics by exploring the products,...

By Paul Rowady | October 11, 2024 | For Subscribers

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US Equity Options: The Money Shot Teasers

Against the rapidly evolving composition of products and customers in the US equity option market during a 5-year focus period, 2019 - 2023, Alphacution assembled, normalized, and integrated several publicly-available datasets to take the unprecedented step of modeling and analyzing a group of 17 proprietary trading firms – all of which are registered broker-dealers trading securities for their own account – individually and as a group… In this Feed post, Alphacution presents a few "teasers" from its upcoming case study...

By Paul Rowady | September 9, 2024 | For Subscribers

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Jane Street Makes Another Debut

Jane Street wedges its way into retail options. It's early. The numbers are small. But, they are a powerhouse with competitive advantages. Alphacution makes its case for what could happen here...

By Paul Rowady | August 22, 2024 | For Subscribers

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Robinhood Battles Schwab For This Top Spot

It appears that Schwab has completed its consolidation and integration of TD Ameritrade. Now this giant is going head to head with Robinhood for leadership in retail brokerage - and all while leaving just about all other competitors in the dust...

By Paul Rowady | August 9, 2024 | For Subscribers

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Comprehensive Retail Equity Option Review: Q2 2024

With a suite of 14 new charts, Alphacution presents an updated review of and key highlights for retail equity option trading - including overall market share, market share by broker, and market share by wholesale market maker - updated through June 2024...

By Paul Rowady | August 5, 2024 | Silver / Premium

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Anatomy of a Zero-Sum Game

At the end of the day, how much risk is actually in US equity options? Alphacution distills and presents some never-seen-before numbers from an unprecedented era of this zero-sum game...

By Paul Rowady | July 30, 2024 | For Subscribers

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Chart of the Month: ETF Positions by Market Maker

Product selection is like the DNA of a trading strategy...

By Paul Rowady | July 16, 2024 | For Subscribers

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Coinbase: Tracking The Big Thaw

In anticipation of growth in (renewed) interest in cryptocurrencies, Alphacution updates some of its analysis of crypto exchange, Coinbase, as a way to monitor the progress of the thawing after Crypto Winter...

By Paul Rowady | July 11, 2024 | For Subscribers

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Estimating The Shorts Universe

Alphacution expands on the introduction of its Strategy Factor Library with a deeper dive into its method for estimating the potential universe of short stock and short ETF securities as a component of the core trading strategy for a large group of option market makers...

By Paul Rowady | July 1, 2024 | Silver / Premium

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Introducing Alphacution’s Strategy Factor Library

Alphacution goes wider and deeper than ever before - as part of the research for our unexpectedly exhaustive case study on US equity option markets and option market makers - to compare trading entities based on at least 84 strategy factors from the simplest factors - like securities universe or number of positions by product class - to some of the most sophisticated comparisons that Alphacution has ever attempted. In this Feed post, we publish this list - the first...

By Paul Rowady | June 28, 2024 | Silver / Premium

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