options hedge

Discussion in 'Options' started by raf_bcn, Jan 30, 2018.

  1. raf_bcn



    out of curiosity.
    The Spy volume is very large in the very last minute of the trading session. That happens every day. Why?
    are they option market makers hedging their positions ? why in the very last minute ?
  2. Did you take note of any specific strikes or directionality in play? My guess would be that it's fixed income buying SPY on close and collaring.
  3. its keeping pace with the high closing volume of the underlying
  4. JackRab


    Volume usually picks up at the close... People closing day positions. Adjusting ETF's and other funds etc. Usually stocks will be done in the closing auction, I don't know how SPY closes... is it just closed immediately at 4pm, or by auction?
  5. raf_bcn


    Spy continues trading after hours until 17:00 East time, but with little volume.
    Yes probably is what beerntrading and JackRab said.