this is a NOT simple explanation
my mind works in a simple manner
cause it's simple
and
uncluttered
so I probably will do a poor job of explaining the explanation....
gggg
-------> but you see OEX wasn't following SPX to the normal degree last week (which is what Patrick was pointing out)
and this week....it was ahead of the spx most of the day
SPX would be down 1.95
OEX would be down 2.34
that is unusual and it was like that much of the day...
thus showing how OEX was supported last week in comparison with the SPX....
so the question was how did it effect the options if they were priced off of the futures
first off, back to my premise --- in order of action and movement --
SPZ.....SPX.....OEX
as I'm now only trading on a minute type basis, not holding overnight, not even looking to hold over from morning til afternoon
let me use a race as an example ----
BBx lines the Z, the X and O up every morning after letting 30 minutes or so expire from market open.
the difference , as in your above example, WILL be different every day and I don't take into consideration day to day cause the "difference in the difference" won't get large enough to impact the BBx calculations, and if it does, the BBx goes into a non forecast mode.
What happens is the Z , X and O line up in a different position from each other daily and the range between them will stay "roughly" the same for the length of the BBx forecast of an hour to an hour and a half.........
when the BBx does the recalculations during the day, the line up of this fictional race will differ from the previous race which started earlier, and the "difference of the difference" will be adjusted and reflected in the start positions.....
So as long as the BBx forecast is accurate and timely, I'll not try to anticipate the call and will trade off the signals.....
------now that makes the answer to your question of how did it affect the options if priced off the futures -----
>>>NO effect on the OEX for the way I trade from the BBx signals<<<
if I didn't clear that up as clear as my tractor windshield (as per Pat's analogy)
ask away,
and I'll attempt again.....gggggg
Regards ---- Nemer |
