SPY price drop today

[sungtaeyoo]

SPY used to be about 4 point higher than S&P 500. But from this morning it dropped and now it's almost same as S&P 500. Does anybody know what happened?

 

[KINGOFSHORTS]

Quote from sungtaeyoo:

SPY used to be about 4 point higher than S&P 500. But from this morning it dropped and now it's almost same as S&P 500. Does anybody know what happened?

Rumor has it that there has been a cash distribution. Thats the word on the street.

 

[riskymove]

SPY trading ex dividend as of this morning

 

[loufah]

SPY gives a dividend every three months on the date of the quarterly futures expiration.

 

[sungtaeyoo]

Then does anybody know how SPY is calculated? Why it's a little higher than SPX?

 

[No.Heat]

Hopefully if you trade an equity that pays div you have a clue as to what ex-divs are.

 

[sungtaeyoo]

Quote from No.Heat:

Hopefully if you trade an equity that pays div you have a clue as to what ex-divs are.

I know why price drops after div. My question is how to calculate SPY in general(I know how to calcuate SPX - s&p 500).

 

[jeb9999]

Quote from sungtaeyoo:

Then does anybody know how SPY is calculated? Why it's a little higher than SPX?

SPY is lower than SPX, not higher.

As of 12/17/10 close SPX is 1243.91, SPY is 124.30.

SPY is a market traded security. What is there to calculate other than the accrued dividend, the expense ratio and margin rates?

 

[sungtaeyoo]

Quote from jeb9999:

SPY is lower than SPX, not higher.

As of 12/17/10 close SPX is 1243.91, SPY is 124.30.

No. Most of time, SPY is higher than SPX. Look at the prices before 12/17/10(before dividend)