Fair value and limit book spreads and confirmation of what I suspected…
http://mediaserver.thinkorswim.com/transcripts/102506_Penny_Pricing_and_Index_Options.mp3
This guy is talking about how retail customer limit orders frequently adjust and move ask/bid marks and fair value calculations, etc… (because of mid-value between bid/ask) —— I have realized this myself frequently in the past month.
This is back from 2006, but it is still relevant information I think. It confirms my thinking that my limit orders can effect bid/asks in the limit book, and also the calculations performed on them (since a lot of the time a mid-point is used between the bid/ask to base them on). Anyway, it is talked about and hit on a little bit for a second I think right around half way through the entire talk….
I am not sure who this guy is talking yet, but he is very good and has a very great perspective from (from my interpretation at least) the larger institutional / market maker end perspective) … which I am becoming very obsessed in…
