Why is S&P moves towards 1250 due to Quad. witching tomorrow?

Discussion in 'Trading' started by Happy Hopping, Dec 16, 2010.

  1. Bob Pisani at CNBC is saying "S&P at 1250 is the biggest outstanding interest is for quadruple witching expiration tomorrow, as such, that’s the tendency to move towards that number because that’s the place that dealers would lose the least amount of money, that’s the reason the S&P moves up today."

    I know what quad. witching is, but I simply don't understand the above? Could some1 explain that in details?
  2. S2007S


    It means no matter what, everyone who buys the SPX futures tonight at 1243 will be able to make risk free money by the close tomorrow afternoon.
  3. The ES DEC futures settle at the open tomorrow, not the close.
  4. No.Heat


    It means nothing.

    You trade price not bullshit.
  5. Maybe Bob Pisani could look up the actual data rather than just make it up.

    SPX options have the biggest open interest at the 1200 strike not the 1250 strike.

    open interest as of Dec 16, 2010 as reported at the CBOE:

    1200 calls 295,486
    1200 puts 295,714

    1250 calls 141,919
    1250 puts 31,608
  6. GG1972


    Maybe the real clue lies in the name - lots of people ignored MADEOFF

    listening to PiSS-Ani is same

    Rick santelli is only credible guy on cnbc others are paid per word
  7. actually I really like Simon Hobbs. He's the only 1 who really challenge those ANALyst who hype up their portfolio, hype up all the stocks that you can imagine. The other anchors just sit there and let them use the "Bring It Home" approach, as Jon Stewart call it, and keep cooking up the prices of all these stocks.

    Anyhoo, whether S&P Future interest is 1200 or 1250, how exactly does that work in relation to the actual S&P 500 stocks? I don't understand why "dealers would lose the least amt. of money", I mean, there are long and short, why would the market necessary moves up?

    And if the biggest outstanding interest is at 1200, and if they are working towards that goal, shouldn't the market fall today?