I would like to see tommcginnis reply more often instead of giving likes. He's a serial liker - he gives more likes than anybody else. He has a small list of ET buddies that he gives his likes to.
Spy put volume and open interest
- Thread starter raf_bcn
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I would like to see tommcginnis reply more often instead of giving likes. He's a serial liker - he gives more likes than anybody else. He has a small list of ET buddies that he gives his likes to.
Maybe, I don't know, but this is another question.
Virtual contract ? what is this? Oh please someonelse confirm this.
In my opinion only one contract is closed. As well as when one side BTO and the other side STO only one contract is created.
Why are you saying 2 contracts ? For one contract to exist it must be 2 sides that Open it. The same thing to close it.
When I BTO and the other side is STC , in reality one contract is changing hands.
And after , when I STC and the other site BTC , one contract is being eliminated. Do you agree ?
Please @rb7 , I don't know who you are . Do you have expirience as Market market or working for a broker or a clearing house to know and state that kind of things.
Please answer me, are you sure of what are you saying?
thanks and excuse me but I began the thread with one question and now I have more questions than before.
Well, I don't know.
I didn't say that to start a confrontation. I say it because I like him. And he always have been very helpful and respectful with me.
Thanks to administrators of the forum that there is not the possibility of giving dislikes, or that could cause a war probably.
By 'virtual' I meant that there is no physical asset associated with each contract.
Option contracts are not 'changing hand' like you said. Contracts are either opened of closed. Each side of a trade is considered individually when they are calculating the open interest (ex: BTO + STO = 2 OI).
Btw, I've been working all my life in the exchange industry (options, futures, stocks, swap). In the U.S, Canada and Europe. Been trading personally for the last 25 years (options, futures, stocks).
wou , for sure you know more than me about these questions.
I really doubt it.
Is not possible that a volume of 1 contract leads to a OI of 2.
Please , imagine that situation.
initial OI = 0
That day there is a participant that BTO a put contract and of course the counterside STO. Thats a volume of 1 contract for that day. And you sates the new OI = 2
Now imagine nothing happens till the expiration day. That day the contract will be ITM or OTM. If it's ITM the holder will execute the put, and the writer will purchase 100 shares. And that's it. There is only one contract since the begining and therefore the OI was 1, and not 2.
If you were rigth, How it could be possible the OI for any strike to be 1 ? Please look at the option chain and you will find OI= 1 for some strikes.
Maybe other ET participants could give their opinion.
I really doubt it.
Is not possible that a volume of 1 contract leads to a OI of 2.
Please , imagine that situation.
initial OI = 0
That day there is a participant that BTO a put contract and of course the counterside STO. Thats a volume of 1 contract for that day. And you sates the new OI = 2
Now imagine nothing happens till the expiration day. That day the contract will be ITM or OTM. If it's ITM the holder will execute the put, and the writer will purchase 100 shares. And that's it. There is only one contract since the begining and therefore the OI was 1, and not 2.
If you were rigth, How it could be possible the OI for any strike to be 1 ? Please look at the option chain and you will find OI= 1 for some strikes.
Maybe other ET participants could give their opinion.
Properly done, this site should be a bunch of smart people looking for answers to questions, and a bunch of also-possibly smart people with answers who take the time to answer them.
For myself, I look all over hither-and-yon to find the answers to questions I have. And these Interwebs have done me very well in that regard, and for decades. My own predisposition is to answer better, the questions posed here that demonstrate some prior effort; a little thread-scanning will find I'm hardly alone in that regard. That said, I feel no need to write what someone else has already written, thereby diluting contributions and wasting everyone's time. And some days (like, today! with the ES gaining 20pts, 90 minutes into the open, and then losing 20pts from 60 minutes to the close), who's got the time?!?
Regardless, here we all is, with Our Man rb7 having explains OI a thousand ways to Sunday, and the 'Net being full of explanatory videos for sure, and yet ..... questions get raised that, should anyone look, have been answered many times over, "on the 'Net."........
Well, here's to an excellent weekend, where I'm going to re-apply myself to the delta-gamma-theta Taylor Series expansion of Black Scholes Merton, to see if I can apply it again in yet *another* corner of my option /portfolio management/ analyses. Woot! Thrills a'plenty.
No.
If 'the other side' held the contract already, they would be STC. Vol = 1. change-in-OI= 0.
If 'the other side' STO, then Vol = 1, change in OI = 1.
And, back to your OP, the put volume was singularly unique on the put side, but there were half-a-dozen call strikes in the neighborhood that could've been a combo match for those (290? SPY) puts. I haven't seen/heard "Eureka!" on that one yet.....
Please you have to read carefully my post. If the initial OI is 0 no one can STC.
So you agree with me. A BTO and STO is a +1 in OI. @rb7 said another thing, that and you liked it.
Please if you could send me some links to that amount of videos and threads talking about it.
Regards
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