Post #2276 by rayvt on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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someone placing a limit order to sell inside the spread pushes down the ask.
I do about the same number of transactions on the buy and sell side, and the effect is symmetrical.

Yes, but...
In these DITM LEAPS there is no or little open interest, so it is unlikely that there is any public investor trying to sell the calls. But, for my example purposes, it doesn't matter who the seller is. You are assured that if you offer the ask it will fill.
And if it is another investor undercutting the market maker, that is a GOOD thing, since you are getting a better price on your buy.

Also, isn't most of your trades in 6/3 options? That is a different territory.

I almost always sell-to-close my options just before they expire, and again/still they are so deep ITM that there is little open interest.

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