CBOE to extend global trading hours for VIX and SPX options

Discussion in 'Options' started by Pekelo, Jun 16, 2021.

  1. Pekelo

    Pekelo

    Just 5 more months and the casino will be open for 24 hours a day:


     
    TooEffingOld and Gambit like this.
  2. roca

    roca

    lool
     
  3. Finally, that was long overdue. 24hrs SPX options will be of much value especially during Asian market hours

     
  4. KCalhoun

    KCalhoun

    Would be great if could also trade VIX etns VXX/UVXY like that. Hmm I see an arbitrage opportunity re the combination
     
    tommo likes this.
  5. SteveM

    SteveM

    I think 24-hour stock & bond markets would be a big mistake. You get a significant enough macroeconomic event and the relentless selling would cascade upon itself in a never-ending doom feedback loop. Would not shock me at all to see the S&P 500 drop -60% in a week if futures were allowed to trade 24/7 and a bad enough black swan event took place..
     
  6. So you rather limit everyone else's freedom because you think forcing them into inactivity makes them come to their senses? Isn't that the same stupid argument the anti-gun lobby uses? If we take all the guns away from people then there won't be any crime and people will come to their senses.

    I can't agree with you because I think we humans can come to our senses. Perhaps short-term reactions to event risk will be more pronounced but why is that a bad thing? If you believe that longer-term holdings won't be affected because short-term (kneejerk) reactions are just that, short-term, then there is nothing to worry about. What matters are fair valuations of what the market in aggregate perceives. And if the market believes an index should be valued down 60% for fundamental reasons due to new information, not just short term but going forward, then it SHOULD trade 60% down.

     
  7. Tavurth

    Tavurth

    It does seem to be the SEC's stance on PDT.
     
  8. Overnight

    Overnight

    The futures already trade 23/5. 24/7 would not make a lick of difference. The only thing that would change is that there would no longer be such a thing as a "gap up or down".

    Both the Futures and stock markets have breakers in place. Being open on weekends would not affect that. If anything, it would simply cause some people to feel a compulsion to work on weekends. Don't Chicken Little the idea.

    As for a black swan event? Weren't you here in March 2020? Did the SP drop 60%? No, it did not.

    If the market feels the SP needs to drop 60% in a week, it will find a way to make it happen, no matter the days the market is open.
     
  9. tiddlywinks

    tiddlywinks

    Overnight is correct.

    He even mentions the circuit breakers that are in place. And fwiw, those breakers are different for the overnight session versus the rth session.

    Fwiw, if the 20% breaker is triggered on any given day, the market closes! 20% is not even allowed to occur outside of RTH. LOL

    CBOE is certain to institute the same circuit breakers... futures, Naz, and NYSE are all in unison in this regard.