The Idiot's Guide to Premium and Fair Value
- Thread starter rs7
- Start date
I thought all feeds showed indications on NYSE stocks.
If yours does not, call your provider and ask. You may not have it configured right. If you are set up to get consolodated quotes, rather than NYSE quotes, I guess you would not see pre-open indications.
Peace,
Rs7
..............
Do you mean the NY pre-market bid & ask in the level II book?
Thanks!
If yours does not, call your provider and ask. You may not have it configured right. If you are set up to get consolodated quotes, rather than NYSE quotes, I guess you would not see pre-open indications.
Peace,
Rs7
..............
Do you mean the NY pre-market bid & ask in the level II book?
Thanks!
No, those quotes, like on Instinet and Island?? If that is what you are talking about, they are "third market" bids and offers, and are a completely different thing than pre market indications put up on the NYSE by the specialists.
There is really no correlation between level II third market prices and NYSE prices prior to the open.
I know on Reuters, if I set my quotes up to show "consolidated markets" (meaning all exchanges, not ECNs, but actual exchanges, like Midwest, Pacific, Boston, Philly, and such), then the pre open indications from the PRIMARY exchange (NYSE) will not show. I don't know what the purpose of using consolidated quotes as a default would be. But I know it's an option on Reuters.
Peace,
Rs7that can provide accurate pre market indications of NYSE stocks
at 915 - 920 - 925 am EST ?
also what is the monthly cost to the remote individual trader for
such a thing ....
<No, those quotes, like on Instinet and Island?? If that is what you are talking about, they are "third market" bids and offers, and are a completely different thing than pre market indications put up on the NYSE by the specialists.>
at 915 - 920 - 925 am EST ?
also what is the monthly cost to the remote individual trader for
such a thing ....
<No, those quotes, like on Instinet and Island?? If that is what you are talking about, they are "third market" bids and offers, and are a completely different thing than pre market indications put up on the NYSE by the specialists.>
I have never seen this, and I don't know how it would work. Not all S&P stocks have a pre open indication. Only a minority do. I suppose they could consider those that do not have an indication to open flat (some up, some down, and it should even out). But the issues that are indicated quite often have very wide spreads between indicated bids and asks, so it would seem difficult to calculate a B/A on the cash index....unless the spread was very large. But even so, what would this information serve?
I believe that all providers get their prices directly from the NYSE, so it would seem that all get the same info. Same pre open indications, etc.
Very rarely are indications posted as early as 9:15. Third market (ECNs) will often show bid and ask prices much earlier on NY stocks, but they are basically meaningless as to having any relevance to the true opening price on the exchange. And most prices on ECNs do not result in trades. Just people trying to buy low and sell high. Unless there is big news, earnings, or some reason to provide more activity pre market in a listed stock (rare).
Cost? I have no idea. Easy enough to do a search on the internet and get prices. Or ask others here. Since I have only traded at firms, I never see the bills.
Rs7
Great post RS thankyou!
Maybe someone has an excel sheet for SP where you can just plug in the numbers and - out jumps current fair value?
Maybe someone has an excel sheet for SP where you can just plug in the numbers and - out jumps current fair value?
I think all services do this. If you are getting real time quotes on the cash and the futures, then you are getting real time "premium" by just using arithmetic (if you cannot enter a formula)...but I believe you can set up a formula in most if not all services.
Even if you cannot use a formula, than adding or subtracting just two numbers should not be too difficult. (put them on your screen one on top of the other....it's pretty simple math to eyeball and just get used to).
I believe that there are some providers that may have a "symbol" for premium. Not sure. Reuters does not. But Reuters will allow you to put in virtually any formula you want, so I do it that way....very easy....last price in futures minus last price in SPX.
Good luck, and Peace,
Rs7Probably easier to use an intenet site. I believe CNBC.com gives this info each morning. As do many many other sites like briefing.com, etc.
Try this...just found it at the cnbc site:http://www.programtrading.com/buysell.htm
rs7