Massive Opening Volume?

[johnnyg]

Looking threw the charts of BHP and WPL today there seems to of been massive opening volume (1st min of trade) that far exceeds anything that ive seen in their previous openings/first hour of trade - although all that volume was in the opening minute.

Wondering what you guys make of it? Is it the big boys trading shares with each other to give a false look of strength on the daily charts or something else?

Cheers.

 

[Sean K]

Options expiry.

Do a google for what it means.

 

[Trembling Hand]

Futs unwind not options!!

 

[Sean K]

Futs unwind not options!!

TY TH.

 

[Trembling Hand]

TY TH.

And to try and pre empt the "what are the big boyz manipulating" tomorrow all the options transfers, and there will $$ millions of them, will show up tomorrow morning before the open.

But I know it won't.

 

[derty]

Futs unwind not options!!

I have had a google on unwinding futures and all articles I read assumed a knowledge of the word. From what I gleaned they usually talked about unwinding long positions at a discount - which I am assuming means selling out of futures contracts at a loss.

Is this sort of on the right track and if not could you give me a quick and simple clarification TH? And if it is a massive selling of futures why is it effecting ordinary shares to such a degree? - cheers.

 

[Trembling Hand]

:

I have had a google on unwinding futures and all articles I read assumed a knowledge of the word. From what I gleaned they usually talked about unwinding long positions at a discount - which I am assuming means selling out of futures contracts at a loss.

Is this sort of on the right track and if not could you give me a quick and simple clarification TH? And if it is a massive selling of futures why is it effecting ordinary shares to such a degree? - cheers.

For the last three months arbitrage BOTs have been buying ASX stocks while selling the SPI futs whenever they drift apart in value, or opposite. The trades have nothing to do with direction bets simply arbitrage trades.

On expiry they are all unwound and everyone crosses hands and squares up the books.

The volume means nothing.

Mostly

 

[UMike]

KCN had huge opening tranactions also.

 

[Trembling Hand]

KCN had huge opening tranactions also.

WOW!! that MUST be something

 

[GreatPig]

What got me the first time I saw it was how practically my whole watchlist would be showing up 10% on open one minute and then down 10% then next.

It was kinda disappointing when it finally opened at normal price movements (normal for times of lower volatility than now), lol.

GP

 

[derty]

Thanks TH, still a bit Japanese to me but I'll be able use that to do some of my own research.

Had me scratching my head too GP, the SPI was down 40 or 50 before the open (can't really remember, down anyway) and one minute WPL is opening at $48 and everything else is up too (and I'm thinking woohoo!) and then WPL is opening down at $30 and then it was up again until finally it all ended up pretty mundane.

 

[johnnyg]

Thanks for the responses and explanations.

 

[Panacea]

Useless Fact #35667 -

This thread is the top Google result for "SPI futs unwinding".