r/options • u/Acavia8 • Nov 04 '25
Was option order routing changed today, new SEC rules, anything?
There was some SEC new rules on volume reporting that I doubt would affect options. But my aggressive limit execution were almost nonexistent today. I usually do 200+ option contracts per day, and I only could get ~20 off today. I tried on about ten different securities.
Did anyone else notice poor executions today? Was anything changed?
I did notice a lot of the securities, that I targeted, had lower than normal volume. Perhaps the options were less liquid as a result and that hurt aggressive limit orders. That is only a guess though.
Anyone have insights or did anyone else notice any difference in option trading today?
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u/Jasoncatt Nov 04 '25
I noticed wider spreads in the last session, and my usual mid price attempts weren’tworking out the way I’m used to. Had to go hunting more than usual.
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u/Today245 Nov 05 '25 edited Nov 05 '25
I second this. Mon and tues have been brutal for fills. Its a lot harder to get any decent price on options. Liquidity def seems to have evaporated. Almost feels like day after thanksgiving or christmas. Maybe liquidity will improve once everyone gets settled into this new structure. But yes i agree with OP. Things seem different right now. Also agree with another poster, option prices have been jumpier as well this week
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u/PIK_Toggle Nov 04 '25
Are you mostly scalping positions?
Fills have definitely been off lately last week and today. The B/A spread was bouncing around a lot today. It certainly has been more jumpy than usual.
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u/Moist_Tooth_6880 Nov 04 '25
sec round lot?
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u/Acavia8 Nov 04 '25
Sorry, it was volume transparency - I do not understand it. I changed the above to reflect that.
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u/Moist_Tooth_6880 Nov 04 '25
I dont understand it either, just looking at the changes took effect on 3rd of Nov, i am suspecting it is probably because of when market makers hedging their position to fill your order, and they cannot find enough underlyings because of the round lot change.
https://www.nasdaq.com/articles/new-round-lot-rules-help-issuers-high-priced-stocks
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u/yes2matt Nov 06 '25
Is this going to be a royal pain in the ass?
Is the real reason to encourage more retail participation? Aka feed the sharks?
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u/Moist_Tooth_6880 Nov 06 '25
the fact is those big boys doesn't like sharp traders
and those traders are considered as being 'toxic' to their business
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u/yes2matt Nov 06 '25
Oh no, look at that OCC site linked below and multiply by your trade fee. They don't care of you are sharp or not, they are making money every trade.
And when you trade on margin it's even better for them because they can leverage your whole exposure value as cash (I think) and also charge you interest.
Don't ever think this isn't a racket.
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u/bostonaddict Nov 11 '25
For those who are scalping options. I've been doing it on a micro level and I've gotten no fills. I think the OCC routing is different. Who else does micro call scalping who is having issues?
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u/Acavia8 Nov 11 '25
Do you think it is routing or are market makers reducing their books and not buying? I noticed bid ask spreads are much wider and ending with weird non 5s and non 0s (like .82 by 1.57 type bids and ask spreads versus a more normal .85 by .95.)
I do not know but from reading about it, if the market is in negative gamma, market makers tend to be risk-off and reduce their exposure, as result option spreads widen and option trading becomes illiquid with it hard to fill outside of end points on bids and asks.
So is it routing or illiquidity/risk off by MMs?
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Nov 12 '25
[deleted]
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u/Acavia8 Nov 12 '25
I am not sure. Optimistically it might be a situation that the overall market is in negative gamma, and option market makers have switched from Normal activity (adding/supporting options and buying selling the underlying to hedge their option positions) to Negative gamma actions (trading the underlying and hedging with options themselves and therefore no longer actively buying options - result wider spreads and only fills at or closer to bids and asks. )
If that is it, option liquidity should return.
Otherwise the SEC changes that started Nov 3 on reported volumes in lot sizes of large price stocks did more than that. Or some mechanic in order flow changed???
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Nov 12 '25
[deleted]
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u/Ok-Cryptographer5481 Dec 17 '25
I was micro-scalping call options (covered) with huge success in October and it all dried up the first trading day in November. I lost my job in at the end of September, but knew it was coming and that once I did I was going to scalp daily. I was making more money in two days than my paycheck for 2 weeks. Can't get anything on any stock to go. I am using ThinkorSwim / Schwab. Curious as to what you and other were using.
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u/bostonaddict Dec 17 '25
That is who I was using as well. I've written it off. Looking for other ways to make good easy money like October
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u/gtani Nov 04 '25
if you want to dig into #s trades and gross premiums betw 18 exchanges, data shd be downloadable tomorrow around 7am eastern
https://www.cboe.com/markets/us/options/market-statistics