How could the S&P 500 settlement be 1172.95 ?

I'm really surprised the S&P March settlement price was 1172.95. The high on the day today was 1169.2. what's with that?

 

Do you understand how SET is derived?

 

yes. and the figure of 1172.95 is still pretty unbelievable.

 

It's called "The Game."

 

I've seen SET a few times in the past 3-5 years be 7-9 SPX points away from the theoretical cash open. 3pts is nothing but friggin' noise.

 

My SPX chart shows an opening price of 1171.85, not at all far from the settlement price. Of course that price lasted about 5 microseconds, and the price plunged from there.

As I'm sure you know, the settlement price is not taken directly from the SPX index. It's calculated from the first printed price of each of the individual stocks in the index.

What was notable was not the deviation of the settlement price from the SPX open, but the big +7 spike at the open relative to the previous close, on a very bearish day. It lasted just long enough to give the options guys the settlement price they were looking for.

Gomer Pyle: Surprise! Surprise! Surprise!

 

Thats a great theory..but exactly HOW would they manipulate it? I really dont know? Jim

 

Opening prints over the first 5 min while each stock opens and than they drive the pre market with the futures and than dump the first 10 to 30 min and settle where we should have opened.

Look back and you will see this game 10 out 12 months the last 3-4 years on expiration Friday. The big banks and desk play this well and make sure all who sold cheap calls Thur get their medicine and learn that those .25 and .50 calls can go to 4 to 5 bucks easily. That's one bad risk reward ratio.

 

So I guess the big question is how can I, as a little guy, profit from this? Knowing something is going to happen 10 out of 12 times sounds like a huge edge..

 

I cant believe all the conspiracy stuff. If you lose money on the opening print its "those damn Market makers". Unreal. Why would someone come back and play a game month after month if you know it rigged? It not rigged!

If you know this happens with such consitancy why not profit from it? Everyone needs to take responsibilty for there own trades and not blame "others" for something like this. This has been a very tough market for MM the last year and they deff earn the money they make.

Jim