Why market is so confident that SPI 200 won't go below 4500 today?

[derenik]

Some one's defending SPI march future at 4519, market makers are so confident that they are selling 4500 put for 1 point. What's going on?

 

[tech/a]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

You trading CFD's?
No M/Ms in SPI Futs.
Already traded at 4478
Oh and youd be trading the June Contract.


AP M1-SFE

 

[derenik]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

I'm talking about SPI March futures which expire today. MM quote options on this future (XJO options) and they are happy to sell XJO 4500 March put for 1 point. It was about 25 points yesterday.

 

[derenik]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

Ahh... trading stopped at 12pm that's why MMs were so confident in the morning and probably manipulated the market for 1-2 hours

 

[tech/a]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

Gotcha
Looking for easy money Id reckon.
Expires today and needs a 45 tick drop to br in the money
Watch the spread widen if it comes down that way.
Xrossed I agree.

 

[sails]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

I'm talking about SPI March futures which expire today. MM quote options on this future (XJO options) and they are happy to sell XJO 4500 March put for 1 point. It was about 25 points yesterday.

Index futures expiry price is based on the first opening price of the underlying stocks comprising the ASX200 index during expiry day. Expiring futures and options contracts cease trading at 12md on expiry day. At least, that's how I understand it - more info on page 3 of this PDF from the ASX:

http://www.asx.com.au/documents/products/asx_spi_200_futures.pdf

 

[skyQuake]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

Index futures expiry price is based on the first opening price of the underlying stocks comprising the ASX200 index during expiry day. Expiring futures and options contracts cease trading at 12md on expiry day. At least, that's how I understand it - more info on page 3 of this PDF from the ASX:

http://www.asx.com.au/documents/products/asx_spi_200_futures.pdf

So thats why heaps of stocks opened too high.

First print nice.

 

[derenik]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

Thanks sails, very informative!

 

[sails]

Re: Why market is so confident that SPI 200 wont go below 4500 today?

Thanks sails, very informative!

You are welcome...

If you are looking at trading options, it pays to know exactly how all this stuff works as it is just so easy to lose money simply because one doesn't understand the rules of the game.