spx spy play and question

Discussion in 'Options' started by raf_bcn, Apr 3, 2017.



  1. If what you mean by "Do you think it is possible to trade the bars ?" is to take advantage of intraday fluctuations between the pair, here's what I see:

    - Based on today's data the difference between the two oscilates between -0.8 and -1.4 so that is a 0.6 /ES point swings (i.e. slightly more than 2 /ES ticks)
    - The pattern is consistent for prior days, but the high and low are different, for example yesterday it was -0.7 to -1.45
    - Considering the bid/ask spread on /ES is 1 tick I do not believe you could trade in and out profitably consistently during the day

    Maybe someone else sees something I don't. Anyone? I would love to know...

    This is today so far on a 1m graph

    upload_2017-4-4_13-11-59.png
     
    #31     Apr 4, 2017
    CBC and JackRab like this.
  2. I agree with you! Still NO coon up that tree!
     
    #32     Apr 4, 2017
    JackRab and TradingDemystified like this.
  3. JackRab

    JackRab

    10x SPY vs ES(June)
    upload_2017-4-5_11-52-23.png

    Those high bars you speak of, @raf_bcn, are probably because of overlapping closed for trading hrs. When SPY is closed and ES still trades. I only show regular trading hours here, but they don't match up between SPY and ES. Also, ES June from before December is probably a bit patchy...

    There's no real opportunity here. Only reoccurring effect I see is the quarterly dividend drop of about 1 in SPY (10 in ES points). And a decline in SPY, but that's because of costs associated with the ETF. If you try to arb that, you'll be paying short stock fees for SPY and still don't make anything....
     
    #33     Apr 4, 2017
    raf_bcn likes this.
  4. JackRab

    JackRab

    Too bad @raf_bcn ... but still worthwhile to get into it like this. You learn a lot from thinking through strategies and different products.

    :thumbsup:
     
    #34     Apr 4, 2017
  5. sle

    sle

    There is a coon up there, but he's pretty fast :) HFT fast
     
    #35     Apr 4, 2017
    JackRab likes this.