Here is just a minute example of what i mean.
This is the days action of SPY calls that had a HUGE volume of 108,000 given it ONLY had 4,062 in the open position going into today.
Now imagine Monster Computers wheeling and dealing in nano seconds.
SPY Feb 2009 77.0000 call(OPR: SZCBY.X)
Last Trade: 0.42
Trade Time: 4:14pm ET
Change: 1.33 (76.00%)
Prev Close: 1.75
Open: 0.68
Bid: 0.44
Ask: 0.51
Day's Range: 0.18 - 1.41
Contract Range: 1.55 - 14.95(that is for the whole month)
Volume: 108,764
Open Interest: 4,062
Strike: 77.00
Expire Date: 20-Feb-09
imagine a machine(following its complex algorithms--that are top secret to certain firms) sweeps and buys 10,000 calls at .18, and makes multi simultaneous maneuvers to create a move up.
The machine, if it wants a "blue ribbon" from its makers, gets a value 42 cents, an over 100% gain.
The key to this is there was ONLY a 4,062 open interest going today.
i can asure the machines were PLAYING D-Day for all it could, and playing both sides--machines can flip in a nanosecond.
Why 108,000 today, it was Op-Ex day--the Casino ruled.
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