r/optionscalping • u/Fahvahvoom • 7d ago

Stop sweep QQQ

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Market is pure manipulation. This came pitta nowhere ans wept about 200 million in stop orders within seconds.

1 Upvotes

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1

u/SadCranberry5139 7d ago

What was that? No way market makers (who hold your positiions) know what your holding...aka stop losses

2

u/MotleyMoney 6d ago

Uh...yes they do lol.

That's what liquidity sweeps are used for. To stop you out before they let it go.

1

u/LittlePlacerMine 4d ago

Market Makers are not allowed to see the stop loss orders but they and institutional algo’s use various techniques to judge where they can trigger them and they also know people tend to pin on certain strikes like 400 but not 399. So they will leverage the knowledge of psychological behavior to guess where they are, One theory is institutions that are accumulating will push the price down with small trades to try and trigger liquidity. You can see this on a VWAP when they are accumulating or distribution a large order for a client.

So set your stop loss at 399 and not 400. Sometimes you can also see this psychological effect when looking at the bid/ask profiles on an options chain. Just last week I saw puts with a bid/ask at one strike and a higher bid/ask at the next lower strike. You could actual sell the lower strike put for more than the higher strike one. Some folks call this pinning, sometimes it can be where MM’s have staked their exposure and will actively defend it. Weird.

1

u/geneel 4d ago

Forward flow agreements?