Discussion in 'Options' started by Jahajee, Sep 29, 2008.
on this spike down @ 3:30 pm
105 OCT puts @ $4
then buy OCT SPY 100 puts later
4$ ??? 105 oct put was around 2$ @ 3:30
Now at 3.20, down 0.90
NOV 100 is 2.10, down 0.68
Interesting... OCT 105 put is 1.50 and the OCT 100 is 0.78
I am going to buy the OCT 105 put @ about 1.50
Got to keep your stories straight. Looks like you are just repeating quotes not stating an actual buy anywhere.
I concentrate on trading not reporting or 'keeping stories straight.' I am looking at October and November chains on SPX, SPY, XLF and USO. If I make a typo and you don't like it then sue me. Who cares?
BTW, all my SPY option trades are profitables - puts bought and sold.
And, I am pondering another trade on this End of Q3 painting of the tape and bailout rally: Closing Nov 105 puts and selling OCT SPY calls.
Floyd got it wrong - they painted the tape all of Tuesday not just last few minutes.
Last-Minute Share Rises Cause Trading Suspicions
By FLOYD NORRIS
Published: September 30, 2008
The last five minutes of trading on the last day of the quarter were very good to a significant number of stocks on Tuesday, including battered financial shares.
Tuesdayâs closing prices were particularly important to money managers who report their performance based on quarterly figures, and suspicions of âpainting the tapeâ â buying shares at the end of the day to drive up the price â have been common during the final minutes of a quarter.
This year, with traders no longer allowed to short financial stocks, sharp rises in share prices in the final minute could not be offset by short-sale orders from investors who suspected tape-painting.
Part of the answer as to whether tape-painting occurred may come Wednesday morning when shares with the largest moves reopen for trading. Over all, the Standard & Poorâs 500-stock index registered 7 percent of the dayâs gain in the final five minutes, while the index of financial stocks in the group produced 11 percent of the dayâs gain in the time period.
For many stocks, the final move was striking. Sallie Mae, formally known as SLM, for example, rose 10 percent during those minutes, accounting for more than half the dayâs rise. The brokerage firm Charles Schwab and the KeyCorp, a banking company, each leaped 7 percent in the final minutes, moves that accounted for more than one-third of their gains for the day.
Old Republic International, an insurance company; XL Capital, another insurance firm; and Janus Capital, a money management firm, all jumped more than 5 percent in the final minutes, moves that accounted for at least 30 percent of their gains for the day.
whats tape painting?
Painting the tape
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