Record Open Interest in CME Equity Products

R

Ripley

Record Open Interest in CME Equity Products
Fifth Consecutive Record-setting Day for Open Interest in the CME S&P 500 Options Contract

Several new open interest records were set on Wednesday, March 15:

CME Equity Product # of Positions
CME S&P 500® options 1,266,523 positions
CME E-mini® Russell 2000® options 44,505 positions
CME E-mini NASDAQ-100® options 21,493 positions
CME E-mini S&P 500 futures 1,778,581 positions
CME E-mini S&P MidCap 400® futures 68,051 positions

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Further evidence that we are headed a lot further up.
 
Quote from Ripley:

Record Open Interest in CME Equity Products
Fifth Consecutive Record-setting Day for Open Interest in the CME S&P 500 Options Contract

Several new open interest records were set on Wednesday, March 15:

CME Equity Product # of Positions
CME S&P 500® options 1,266,523 positions
CME E-mini® Russell 2000® options 44,505 positions
CME E-mini NASDAQ-100® options 21,493 positions
CME E-mini S&P 500 futures 1,778,581 positions
CME E-mini S&P MidCap 400® futures 68,051 positions

*******************************************

Further evidence that we are headed a lot further up.
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Don't half the people holding those positions think the market is going down?
 
Don't know what you mean easyrider. But, most likely those people who thought the market was going to go down should've been stopped out by now, or most likely bagholding to huge losses.

Trend is UP, who in the right mind would be shorting now.
 
Quote from Ripley:


Trend is UP, who in the right mind would be shorting now.
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Everyone who goes long a contract purchases it from someone who thinks the market is going down. I have a scale on my desk to remind me how closely the market is balanced because forgetting that fact can get you into a lot of trouble.
 
thats why A FAST SHORT MIGHT WORKT RIGHT HERE. PUT TO CALL WAS THE LOWEST I'VE EVER SEEN IN MY 15 YEARS DOING THIS HANGING AROUNF .29
 
I did trade options a long time ago but it was to complex for me in the end...What do you make of the ratio at the moment?..

Dell
 
Quote from joeyata1:

thats why A FAST SHORT MIGHT WORKT RIGHT HERE. PUT TO CALL WAS THE LOWEST I'VE EVER SEEN IN MY 15 YEARS DOING THIS HANGING AROUNF .29
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http://www.thestreet.com/p/rmoney/stevensmithblog/10274103.html
Put/Call Skews Low

By Steven Smith
Senior Columnist
3/16/2006 3:05 PM EST
Click here for more stories by Steven Smith
People are asking me about the low put/call reading. This morning's first post, which pointed out that "much of today's option volume will likely consist of expiration-related activity, such as liquidation and rolling to later months can greatly skew intraday readings," is turning out to be an understatement. At 1 p.m. EST, the overall put/call was 0.22, while p/c on equity products was down a minuscule 0.17.

There is indeed price- and expiration-related activity, with the S&P 500 blasting through 1300, and other indices also slicing into higher strikes. It has pushed money calls that last week were written off as worthless into the money, forcing both longs and shorts to do something that's generating high call volume and producing the low put/call reading.
But the real driver of the huge call volume is the Spyder (SPY:NYSE - commentary - research - Cramer's Take) going ex-dividend. We are definitely seeing some dividend plays. The total volume of March SPY calls, specifically the ITM $124 through $130 strikes, is approaching a whopping 2 million contracts. This is more than 10 times the current open interest in those six strikes.
 
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