StockFetcher Forums · Filter Exchange · super green alert>spy>166 at close today>weekly 165-166 calls<< >>Post Follow-up
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



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

jimmyjazz
99 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?

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

jimmyjazz
99 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. :)

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

jimmyjazz
99 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.

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.


StockFetcher Forums · Filter Exchange · super green alert>spy>166 at close today>weekly 165-166 calls<< >>Post Follow-up

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