optionplayer333
801 posts
msg #113671
- Ignore optionplayer333 |
5/24/2013 11:14:47 AM
1. buys now weekly calls
165-0.16
165.5>0.7
166>0.03
2. they have gotten 3.5 billion $ s worth of spy at 164 to 164.60 the last 2 days
the max pain is at 166 now> they will likely go to 166.50 and close above 166
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optionplayer333
801 posts
msg #113672
- Ignore optionplayer333 |
5/24/2013 11:18:00 AM
SPY 142.38B $164.67 -0.47% 55.67M 1.28 +$2.03B >5-24
SPY 142.80B $165.43 -0.30% 193.77M 1.08 +$1.37B >5-23
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jimmyjazz
102 posts
msg #113673
- Ignore jimmyjazz |
5/24/2013 11:28:47 AM
You expect SPY to pop 2 points in the next 4.5 hours?
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edbrady
10 posts
msg #113674
- Ignore edbrady |
5/24/2013 11:42:42 AM
Dude - he is right - the options already went from .16 cents to .24 cents
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jimmyjazz
102 posts
msg #113675
- Ignore jimmyjazz |
5/24/2013 11:49:56 AM
I really struggle to understand his posts. I'm familiar with max pain theory, and in my observations, it doesn't seem all that reliable. Right now SPY is at $164.80, and $166.50 seems a long way away.
But I hope he's right! Just so long as GLD doesn't drop below $132.50. :)
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edbrady
10 posts
msg #113676
- Ignore edbrady |
5/24/2013 11:55:39 AM
Well - what he was saying was to grab the options at .16 cents and they were already up to .26 cents.
So grab 1,000 contracts and make 10 cents
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jimmyjazz
102 posts
msg #113715
- Ignore jimmyjazz |
5/26/2013 10:18:27 AM
Well, it didn't get anywhere near $166, much less $166.50, but I can't argue with buying at $0.16 and selling at $0.25!
Tell me . . . how exactly does one deal with large bid/ask spreads when trying to jump on a trade like this? I guess on SPY options it's not too bad, but even now I see the spread is some 10%, which is pretty rough if you're trying to grab a 5% pop.
Do you always try to trade at the middle of the spread? That would seemingly mitigate the effect. "The middle" would pop the same amount as the bid & ask, but you'd never be on the wrong side. I just don't know how realistic that is.
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edbrady
10 posts
msg #113716
- Ignore edbrady |
5/26/2013 11:07:10 AM
I never trade anything over a 5 cent spread. In fact, I usually trade penny increment option, as Think or Swim has a built in category that will only show those stocks with penny spreads. They are the most liquid and easiest to get in and out.
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