As of right now: FV=10.25 http://www.indexarb.com/index.html SP500 FUTURES 1434.20 http://www.bloomberg.com/index_americas.html SPX 1424.73 http://finance.yahoo.com/?u
Here we go: 1424.73+10.25=1434.98 1434.98/1434.20=1.0005 No Change? Obviously it's many hours before open and Futures could head either way...but is the logic and calculation above correct? Thanks.
Correct. With those numbers, the market would be opening virtually unchanged. Keep in mind though that you are essentially trying to predict where the market will open at 9:30 based on where the futures are trading. Therefore you would probably want the most up to date prices and wait as long as you could before sending your orders. Futures could easily move a few points between 9:15 and 9:25. That might not seem like much, but it could be the difference between getting 1 fill vs. getting 10 fills.
Don't feel bad, I submitted orders on 433 stocks today and got filled on two. Just ultra dead this week.
Don, You didn't respond to the comment asking whether this was something you taught in your bootcamp... Do you have greater details available as to what you get into in the bootcamp? Mike
We definitely do openings during bootcamp, it's nice to have new traders feel confident early on. We are focusing a lot more on Pairs and other arbs + automation and hybrid changes, etc. As the market changes, we adapt as much as we can. The boot camp speeds up the learning curve by 6-12 months, and that could avoid a lot of $$ and headaches. Don