9000:250 (BID/ASK) on spy puts!!

Discussion in 'Options' started by noob_trad3r, May 9, 2012.

  1. Wow big demand. looking at the full order book

    Looking at selling puts this week on SPY. much more buyer demand than sellers.
  2. Traditionally a high put/call ratio was interpreted as bullish under the assumption that retail was buying and the option sellers were the larger institutions.
    Nowadays, with retail deserting stocks, one cannot draw the same classic conclusion. Who knows, maybe the option buyers are the large hedge funds.
  3. Couldn't begin to imagine why that might be the case for options...
  4. Do you have any actual basis for this trade?
  5. Thank you JPM.

    Sold SPY puts in the morning. was the ask side for a bit got filled and now a nice little rally today it seems :D
  6. I have no idea what expiration or strike it is but I don't see this huge difference in bid/ask spread size as a pointer to anything. Very often when the teoretical value (think black scholes or any pricing methodology) of the option is going to go higher if the SPY is going to go higher a couple cents more then less sellers are there willing to sell them. It does not represent their thinking about the market outlook of SPY! For example you have a bid/ask 0.05/0.06, the theoritical value can be 0.056 so less volume on the ask then if it was 0.054.
  7. And...........