But the fact of the matter is - this happens EVERY day, no matter what. Bullish day - this happens. Bearish day - this happens. Flat day - this STILL happens.
I’m talking about a $20 million dollar trading mistake caused by hedge funds, banks, and other “Big Money” who are more concerned about getting thousands of contracts filled than they are about getting the best price.
That means they pay MORE to guarantee they get the size trade they need.
Think about it like this.
Big Money is like a massive grocery store chain.
Are they going to shop around 55 dairy farmers looking for the lowest price per gallon? Absolutely not.
They’re going to find two, or even just one dairy farmer that can fill their ENTIRE order, even if it costs them more.
Their priority is QUANTITY.
Same goes for when Big Money trades options. They’re looking for quantity, not the lowest price…
Which means they often pay more than retail traders like us want to.