SPXpm May Reveal Big SPX Pit Preferences (possibly)
SPXpm May Reveal Big SPX Pit Preferences (possibly)
As I stated in yesterday's post, I traded a contract on SPXpm, and I noticed a couple of things:
1. The market is tight. On the put option trade i got filled .1 away from Mid Price
2. There was a strange coorelation between the prices of SPX AM options (the big pit) and the SPX PM options. See if you can see how the too are related:
SPX AM (Big Pit) Option in October and November:
SPX PM in October and November:
Here is a question for you traders, what do you interpret from the above montages? I will answer what I noticed tomorrow (you can find out on the Option Block Podcast that gets released tomorrow as well). There was something very specific I noticed. It was eye opening to me.
Images courtesy of Live Vol.
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Mark Sebastian is the Director of Eduction for Option Pit, and a former market maker on both the Chicago Board Options Exchange and the American Stock Exchange. He has been published in nationally on Yahoo Finance, quoted in the Wall Street Journal is a featured contributor for TheStreet.com. He also writes regularly for SFO, and OptionsZone, and is the managing editor for Expiring Monthly: The Option Traders Journal.
To learn more about Option Pit and its mentoring services, please visit OptionPit.com
Mark Sebastian is the Director of Eduction for Option Pit, and a former market maker on both the Chicago Board Options Exchange and the American Stock Exchange. He has been published in nationally on Yahoo Finance, quoted in the Wall Street Journal is a featured contributor for TheStreet.com. He also writes regularly for SFO, and OptionsZone, and is the managing editor for Expiring Monthly: The Option Traders Journal.
To learn more about Option Pit and its mentoring services, please visit OptionPit.com
About Mark Sebastian
Mark Sebastian is a former market maker on both the Chicago Board Options Exchange and the American Stock Exchange. Along with his role directing the path of education for Option Pit, Mark is currently the director of risk for a private hedge fund. He writes a daily blog, the Option Pit blog, formerly Option911. Sebastian has been published nationally on Yahoo Finance, Google finance, Financial Times Alphaville and is a featured contributor for TheStreet.com. He is also published regularly at SFO, the Options Insider, and is one of the Co-Hosts of The Option Block Podcast, a featured Podcast from Options Insider Radio. Mark is the managing editor for Expiring Monthly: The Option Traders Journal. Sebastian has a Bachelor's in Science from Villanova University.
To learn more about Option Pit and their mentoring services, please visit: http://www.optionpit.com
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