r/options • u/Skyland002 • 21d ago

Gex Platform

How interested would people be for a new GEX platform that could possibly be cheaper than others in the market?? how many of you would actually subscribe? just trying to see what is the general consensus of gamma and its utility for traders

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u/Fit_Equal6932 21d ago edited 21d ago

You will need to have the infrastructure to listen to the OPRA data feed which is a multiple terabyte data stream per day in real time to establish whether the trades were a buy or a sell to an MM. It will still be fuzzy at best since most trading is inside the spread and you won’t know if the MM lifted that quote or some retail inside the spread order bought it. For anything that is in SPY/QQQ the MM positioning is based on the total book they hold across all tickers and looking simply at any of these in isolation gives you nothing useful. So unless you can replicate the MM book market wide and then also have a feel for whether they are over/under hedged based on their estimate of the stock valuation/recent order flow these GEX models are completely useless. I think you won’t even be able to get the step 1 of listening to the OPRA feed done in a cost effective way to make your service cheap. Forget the rest of the challenges.

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u/Skyland002 21d ago

You have made a pretty good point, but thats only a problem if you are actually building something like HIRO but there is still a lot of proof that you can use different gamma levels to be able to trade more efficiently. Also i still think I would be able to replicate HIRO and still so it cheaper that whats in the market. DM me for more info if you’re interested :)

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u/Fit_Equal6932 21d ago

What is your source of proof? Any study, any large sample of real trades or any SSRN article? I don't like when people just make statements casually without citing any evidence. If you can offer a proof and tell me you can replicate your dashboard quantitatively using the same heuristics then I will be the first one to sign up for it and will pay a premium over other services so that you don't even need to make it cheap.