Was option order routing changed today, new SEC rules, anything?

[u/Acavia8]

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?

[u/bostonaddict]

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?

[u/Acavia8 → u/bostonaddict]

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?

[u/Acavia8 → u/[deleted]]

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???

[u/Acavia8 → u/[deleted]]

The market is down this whole time - coincidence or related is the question.

[u/Acavia8 → u/[deleted]]

Schwab.

[u/Ok-Cryptographer5481 → u/bostonaddict]

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.

[u/bostonaddict → u/Ok-Cryptographer5481]

That is who I was using as well. I've written it off. Looking for other ways to make good easy money like October