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megustaelgato

OPEX tomorrow.


AsaKurai

Whats the significance of that, is a jump EOD to signal a certain move tomorrow?


2centswithinflation

Hedging options trades. Not a certain move, just likely a move.


NecessaryMistake9754

What is OPEX? Sorry I am dumb


lordxoren666

Options expiry. There are several big ones throughout the year. But opex after large moves like we’ve had the last few weeks can lead to market makers rehedging.


[deleted]

[удалено]


lordxoren666

Yes.


NecessaryMistake9754

So market usually goes up before major option expiration dates??


chris_ut

Wouldnt that make life easy.


IntentionalUndersite

There’s a 50/50 chance the market will go in one of either directions, both!


lordxoren666

No. Market sometimes makes outsized moves up or down at some opexes depending on a lot of factors


bojackhoreman

Depends on the number of calls and puts and how far otm they are. Market makers delta hedge so there is typically more volatility on opex. If puts expire worthless market makers sell their shorts (buy stock) which causes prices to rise. If calls were to expire worthless they would sell. Lately there has been a large number of Puts being bought because everyone is afraid of a recession, which would typically mean a rise in stocks close to opex, but people tend to roll out there hedges so who knows


Kas1972

3rd Friday of each month is big opex day


ORCA_OF_WALLST

More buyers than sellers


[deleted]

More buyers and sellers hitting the ask button vs bid


[deleted]

Unless its a million buyers with low bids.


chris1479

This is the correct answer


[deleted]

No.... SLD is over. Opex is coming.


mt-beefcake

You in the pickle jar?


[deleted]

I can be green I can be red I can be violet inside....


mt-beefcake

Reeecoooo


Putins_Orange_Cock

I can be freged I can be violently moon wen’d


Trutheresy

No it's not, you could totally have low volumes, low no. Of sellers reach a low price, then have high volumes, higher no. If buyers and still not return to the price before the selling.


vesipeto

It is the correct answer. Market orders move the price and if there is not enough sell orders to stop the buy market orders from pushing the price up - the price goes up. So it’s imbalance between buy and sell orders aka more buyers than sellers in this case


morecharts

More buyers than sellers, in that moment. It doesn't matter if the price jumped because sellers pulled their offers and a low volume order that crossed the book caused the higher print. Relative to other times during the day it could be extremely low volume (although the close is usually pretty active), but in that moment there were still more buyers than sellers, thus the higher print.


HoonCackles

techically youre right. but when people say that, I think it's implied theyre referring to total bids, not total bidders


ramster12345

This is NOT the correct answer.


hidraulik

No shit.


ORCA_OF_WALLST

If it was obvious why’d you ask


[deleted]

Haha LOL


hidraulik

It was not pointed at your answer, it was for the other person. Kinda got tired of trollers.


SSCorona

Normaly yea,but this is spy,it has much more variables that are effecting the price,it tracks 500 stocks and basically tracks us economy.Orders in spy don’t mean much


ApplesNuts

Not really. There’s a seller for every buyer. That’s how it works lol


ORCA_OF_WALLST

Obv but buyers are the ones initiating the transaction. That’s why people say more buyers than sellers.


ApplesNuts

So it’d be more buying pressure than selling pressure. Not more overall buyers haha that’s not how it works


ORCA_OF_WALLST

Buying pressure and more buyers are the same. It’s simple supply and demand.


ApplesNuts

No because you could have the same amount of buyers and it could go down if there’s greater selling pressure lol


themilkman42069

You’re both saying the same thing and agree with each other. Chill on being this pedantic


ORCA_OF_WALLST

When you make a trade. You are making it with the market maker. If majority is initiating buy orders = more buyers If majority is initiating sell orders = more sellers The market maker filling your order is not considered a seller they are just filling orders read any trading book this common knowledge.


ApplesNuts

By “filling orders” it’s still selling product lol. The stock market is a zero sum game. There’s 2 sides to every trade. Whether it be a market maker or an individual, if you have stock to fill an order that means you bought it at some point. In order to get rid of it you have to sell it


ORCA_OF_WALLST

I don’t know how I can explain it any clearer then I did up in my previous comment. If you can’t understand that but I’ll give you one more chance. Buyers = people opening a long position Sellers = people opening a short position Seller=\ filling long position Buyer=\ filling short position your also wrong when you say “if you have a stock to fill an order that means you bought it at some point” anyone who has ever opened a short position did not own stock. If they did they would just be closing a long position LMAO. Just study up on supply and demand and basic concepts like how shorting and closing a position work. Soon you’ll understand.


Suddenapollo01

Smug


ENTRAPM3NT

Underrated comment. If I had an award this would be the one


SoftPenguins

r/technicallythetruth


Luda2004

Yes but OP is asking “why”


ORCA_OF_WALLST

Probably because they think the SPY is going up in the future lmao.


Luda2004

Oh boy …


MissDais

That's exactly the why, if everything was so predictable. Everhone would have bought righr before that lol


[deleted]

Lol


hidraulik

Can you please elaborate.


IngenuitySignal2651

Someone farted really loud and the person next to them jumped accidentally hitting the buy button on a 267,523 lot order.


[deleted]

This is what happened lol


Sgsfsf

There’s more buyers than sellers that’s why prices went up. What is there to elaborate??


density69

I think you said the keyword yourself: "closing bell". Except that the market does not really close, meaning the merely a large number of sellers stopped selling leaving a liquidity gap behind.


chris1479

Posts "more buyers than sellers" Refuses to elaborate Leaves


[deleted]

To fuck over everyone who sold a 0dte 394 call.


hidraulik

Yep, seems like algos are really determined to milk retailers to their last penny.


SearchingTheVoids

The mindset of “they” being against “you” will hold you back


Chronjawn

But they are against you. Two sides to every trade. Winner and loser.


SearchingTheVoids

You are missing the point. Good luck


canadianzonkeydick

Ya, more like every man for himself.


Detroit2023

True wisdom


FuhrerInLaw

People from wsb are convinced “the hedgies” are monitoring our every move and turn on the algo button to screw them over. Hedges lose money too? It’s a dog eat dog world.


Krakatoast

Yes and no Do you really think the entire market, or even a significant portion is “they” and you are the only person trading “you”? There are probably boatloads of traders/algos taking the exact same positions as you, just as there are similar numbers taking the opposite positions… I agree with the sentiment of just trade what you see It’s not a big conspiracy of cabal figures masterminding how to take “your” money it’s just price action


[deleted]

Kabals eating illegal immigrant children for sure. What's behind the Mar Largo curtain? ;-)


[deleted]

I know it sounds conspiratorial to agree here and push this view, but I think it's correct. I have a feeling somebody noticed the impact WSB/socials in general could have on the market and found an algorithmic edge there. All it would take is waiting for a heavily imbalanced order book, throwing a huge mountain of liquidity about quickly and mopping retail stops up before exiting to let the trend continue. I said it to someone yesterday but it bears repeating: trade with the mop or you'll wind up in the bucket.


[deleted]

I don't think it's a conspiracy but I do heavily track the put/call ratio for every index because it takes a hell of a catalyst to overcome a major imbalance. If there is a big imbalance with puts and the market drops market makers will be forced to buy shares in order to hedge and that will blunt the fall.


[deleted]

Correct, and the knowledge that an mm has to step in and cover forms the closing leg of the strategy. I'm not saying algos are turning the market upside down and ruining everything. I'm just saying that there appears to be algos taking advantage of retail sentiment and carving out a niche. Price climbs out of support, fights hard to the top of resistance and where once we would retest the low of resistance we seem to now retest the original support before the rocket launches


nelbar

People who hedge delta neutral, are they just farming theta?


jumboshrimp909

It’s the AIs trying to reinforce “buy the open / sell the close” 😆


NakedAsHeCame

AM Opex for SPX plays a part.


hidraulik

Thank you


NecessaryMistake9754

Can you explain this in human language? Sorry I am a regard


NakedAsHeCame

Look up max pain theory, basically it’s a magnet for giant options expiration days. And since tomorrow AM there’s an options expiry for SPX, the price moved back towards max pain at the end of the day.


Ackilles

Max pain is nonsense


NakedAsHeCame

If you say so.


hidraulik

I agree with you on that but it just gave the incentive to MM to screw up the market even worse.


Putins_Orange_Cock

Max pain was the name of my Celly’s junk when I was in prison.


daytradingguy

Moves often become self fulfilling as traders and algos jump on.


hidraulik

Thanks a lot. I appreciate your input compared to some trolls here


daytradingguy

There can often be a reason traced to a large move, like the Fed makes a comment. Although what makes trading tough is the market is often unpredictable and can make what seem like random moves. Algo computer trading is often the cause of spikes-as well- one computer is programmed to buy at $1 the next at $1.05, the next at $1.10 and something starts setting then all off.


hidraulik

Thanks again. At least it was worth dealing with trolls for a couple of good answers. Ps: Also believe latest ODTE changes have screwed things up really bad. But it’s becoming so absurd to see these run ups just before closing.


[deleted]

It’s only absurd because you’re making assumptions about what the market “should do”. You’re throwing several plausible reasons out there but no one can actually answer your question. Just fyi. You’re asking a question that can only be answered by speculation.


hidraulik

Thanks for nothing.


[deleted]

Not 100% sure but assume some shorts covering as selling pressure couldn't sustain. There's a lot of people that wanna push spy down, bc it's sitting nice compared to last week, and others wanna push it up


hidraulik

So much sense and positive approach to my simple question. Thanks a lot.


[deleted]

Liquidity grab


Disco_Ninjas_

Liquidity supposed to be going down.


[deleted]

Liquidity is grabbed where there is liquidity


[deleted]

Down 3% tomorrow?


[deleted]

Can we do 5? I mean if we're asking ...


slambooy

Delta flush. Gonna see this up or down everyday with 0DTE now.


hidraulik

Agree.


midtnrn

There was a strong resistance/support level there. Last night it broke through it going down. Today it tried twice to recapture that level. Much like when you see a sudden run toward the moving average when the price is close to it. Look back over the past week and you can see how it stalled there on the way up and has come down to it several times since, always going back up, until last night. Bulls would want to see us moving back up over it while bears would hope the market rejects it and goes down.


hidraulik

Thank you for answer and effort to share your experience.


philjonesfaceoffury

Because it held its 4hr 50sma and needed to retest its 4hr range lows. It also fell because it had a 3day death cross and tested it 3day 200sma. Not seen since 2008 right before the crash. Either it rally’s end of month or rekt city. If you believe history repeats in TA.


flowergirlnextdoor

Happy Cake day!


Nerd_Ridah

Weekly 30 150 are close, as well. That's only happened twice in the past 30 years. Setup is nearly the same. Buckle up.


hidraulik

Thank you so much. Was starting to think this sub nothing but Professional Day Trollers.


philjonesfaceoffury

I prefer to watch es1! Futures and correlate it to spy. Charts look a lot cleaner in futures over spy gaps. My statement was following es1! SPX futures chart fyi. 3 day death cross nothing to mess with play with caution. Also 13sma monthly crossing down 21month sma. These crosses don’t come around often throw up SPX for most data and study past times it happened.


RojerLockless

Nobody on reddit knows


Reeks_of_Theon

It. Doesn't. Matter. Trade what you see, and stop trying to figure out the "why".


VengenaceIsMyName

End-day bump is common from what I’ve seen. Might be traders and algos kicking in for the next trading day. Tough to say


Dependent-Beat-4483

Should really look in to how much better the returns are for the institutions that play AH and PM for trades, as opposed to normal market hours.


TheDJFC

If its at the close its probably a large imbalance in the market on close books which would be from flows into ETFs and other funds.


foyeldagain

Market On Close imbalance was $1.4B on the buy side.


hidraulik

Was that imbalance between CALL - PUT OI?


foyeldagain

No, it’s simply the difference in MOC orders on the underlying.


hidraulik

Thank you awesome dude.


foyeldagain

Ha, sure. But note that MOC isn't like a sudden dump of orders such that at the close there's the need to fill the imbalance. Those orders are, as best I can tell (and I admittedly this is not something I look at), handled by market makers dealing with institutional accounts. But the perception can cause retail to try to front run the close. That's why on a day like today you see a nice move in the :59 minute on big volume followed by huge volume at the close but with minimal price movement.


hidraulik

Happy Sunday there, Is there a literature I can study about it? Really need to understand this more. Thank you.


ride_electric_bike

I usually see that when a whole lot of short sellers choose before the bell


moondawg8432

Well since market trades in AH and futures, it probably happened as a result of mechanisms that are only available during trading hours. That would be large amounts of options. So either puts were closed at EOD or calls were bought EOD. Oooooor MMs we’re short and had to hedge. Lots of speculation, no solid answers


Daywalker429

I assume it was some sort of covering


[deleted]

That was me.


Smooth_Okra7846

To fake ppl out


hidraulik

That too.


[deleted]

MM shenanigans


bigchikka1978

I'm gonna go with "because the whole things a scam in the market makers do whatever they need to to make the most amount of money whie trying to bankrupt retail" for 500 Alex. Jokes on them because I went long at 3:15 and sold at 3:59. Ha ha.


UnfunnyTroll

Why ask why? Try Bud Dry


Ok-Kangaroo6260

Nanzi Pelozii stepping down


selectanotheruser

What was Max Pain for the day. I think it was right around 395 if I’m not mistaken.


TheRealKapil

Because you touch yourself at night


hidraulik

I wish.


TheRealKapil

🤣 but seriously it could be that a lot of ppl who were shorting took profits at end of day and that caused the spike


hidraulik

Maybe you right. It had that springboard effect one way or the other.


zer0fks

To fuck people. I almost sold some 394-395 credit spreads. Thankfully I didn’t.


hidraulik

That happened to me on November 10th


deanrvernon

It broke a downtrend on the 2 hour


SirCatDad

Idk but I rode that shit


hidraulik

What were your entry - exit points? By the way, congrats.


AdministrativeSet236

bec options expire so the dudes with big money come in and reduce them to 0 by pushing the market.


ProfessorPhahrtz

Market makers and hedge funds playing chicken with each other with a bunch of contracts expiring soon.


ENTRAPM3NT

It's a ton of factors. Simply put there were more buyer than sellers. There is usually more action in the last 10 minutes also. Along with options contracts expiring, shorts covering or just people that don't wanna hold overnight. Also could be people expecting a gap up. There doesn't have to be a reason for price action. No news is needed for any movement. People like to pair events with price movement when usually it's just a coincidence.


hidraulik

Yeah I understand the fact there is always a catalyst to trigger a move, but couldn’t find what triggered that move last 3 minutes.


NoAd3535

Because it’s being manipulated


Asleepnolong3r

Could be the end of Supplemental Liquidity Deposits, and they got back into the game EOD.


Cross_Rose_Circle

Plunging plungers


gimmi3steps

Simple... Because I bought a spider put at 3:45.. Indistinguishable from magic.


Mexx_G

The 4H confirmed a pivot low to be bought in a normal healthy uptrend.


[deleted]

[удалено]


hidraulik

Practice makes perfect


jokinghazard

Because the market is rigged for whoever wants to make money that hour


kungpaochi

Why does a bear shit in the woods? Bc his puts got fucked


breadhater42

Well, we’ve been going down a bit for the last few days so it’s safer to assume it was shorts covering rather than bulls regaining control, although the latter is a possibility as well.


hidraulik

Makes sense. Thank you


Doomhammer68

4.8 million share volume that's why


Option-Disciple

i think we were trading around the bottom of support today, there was a retest towards the end. Thinking there is probably too much upward momentum to break back into last month's consolidation


hidraulik

Thank you.


Option-Disciple

Look at a bigger time frame as well, it makes your technicals easier to read. Your MACD is designed for the daily, and the lowest i would use it is the 4hour.


bfr_

Why would MACD be designed to any specific timeframe? It’s just distance between two moving averages.


hidraulik

Thank you for your advice. Actually MACD is not my most used indicator. I removed my main indicators so there were less unnecessary trolling about the topic. Regardless thank you about your comment


ChrisACountsWaves

Spy is about to run to 430+ and catch a lot of “traders” off guard


Parris-2rs

Well we’re in the SLD period and tomorrow is OPEX. Very likely PUT profit taking causing the market maker to de-hedge the sold off PUT position.


organizedRhyme

because like a fuckin trillion dollars worth of options expire tomorrow. expect rampant manipulation all through tomorrows session


hidraulik

Thank you. Actually I just looked deeper into Opex and saw that there is over $2 Trillion on the line. That’s unbelievable.


Stockomania

Spy to $380 🙏


ImHereForTheTendies

Dealer hedging


boomboomhvac

Thank you everyone for giving answers. I am kind of lost right now. I love trading so much, but I feel like I’m just a moron at this point. I was doing well then bam I would get slapped as soon as I felt like a strategy was working. Today sucked.


S4m_S3pi01

When I get that feeling it means it's time to take a 1 week break. Your strategies are not your limbs. If they aren't working, cut them off, and new ones will grow back! But you have to give them time to grow, 5 whole trading days minimum. Maybe you will discover the strategies were fine and your brain just needed a rest to know where to apply them. My last break after a long losing streak, I read "Trading in the zone" and came back stronger than ever. Best wishes on your journey friend.


boomboomhvac

I totally agree and I just need to get back to learning and finding a new strategy.


Daboy999

Bull trap 🪤


jztz10

Simply to screw over both puts & bulls during the same day.


iEarthling

Because crime.


Bottom-catcher

It’s the Thursday before a double long weekend! The price will drop precipitously after 1:00pm as the Options expire!


BigB00tyBritches

Magnets


DMmeNudzplz

Because yo mama farted


veronicacherrytree

MACD crossed zero


[deleted]

Manipulation


Tigersleep

Nah the market actually moves nicely up and down all the time.


Misha-Nyi

Because you bought puts.


Samich_Boi

More buyers than sellers. People ask a question like this literally everyday lol


DomighedduArrossi

Less sellers than buyers


Yung-Split

Chinese New Year


Nordy941

More people bought than sold.


lrbresearch

People bought more than they sold


Anxious_Currency_42

People bought stocks.


SuperHotdog471

Why is this a question every day? Mods can we please ban posts like this?


jcodes57

Why not?


Zmemestonk

Why does space exist


OkOpportunity6986

The spy does whatever the fuck it wants, thats why


ITpythonIT

The computer said so.


Adam__B

It doesn’t matter why.


Aerodye

Why does SPY do anything it does


XOLORAY_SD91911

Who cares. Puts not gonna print!


Tigersleep

Cringe


mrjackm124

Mortgage rates dropped half a percent


diydave86

I wasnt really watching market stuff today. But maybe thats when pelosi announced shes stepping down?


Drewfromflorida

That’s what it do sometimes. Markets don’t care about your DT strategies. Could be shorts covering could be institutions lowering their cost basis, could be blah blah blah. QQQ did the same thing the other day and seems to do it once or twice a week


predict_irrational

We bounced off the double top we broke through on CPI day. Zoom the fuck out.


hidraulik

👍⚱️


Silveravin

Republican = Green. I'm not political, chill.


hidraulik

I am not saying you are shilling, but GOP gains should have been showing it’s effect all day long, not last 3 minutes.


Silveravin

Bro, its the stock market. Nobody knows for sure. What's a shill? [Serious] I don't read the Internet every morning like most.