As the title says…
We saw a small spike in price on the SPY and QQQ when the rate cut was announced and then it when back down and traded about even for the day. I was like “huh weird thought the market woulda loved that. Must be ‘priced in’ “ as the old folks say.
But no ts went up like 10$ overnight after trading closed and options were through the roof the next day. Why? How did I fuck this trade up.
Highly regarded replies only why did the spy and qqq wait until after hours to go up after the rate cut Wednesday?
byu/Various_Classroom_50 inwallstreetbets
Posted by Various_Classroom_50
13 Comments
Had to wash out the weak hands brother
The first move is always wrong.
But more seriously, probably even many of those equity guys who had been shouting Feds needed to cute rate by .50 or more didn’t really believe Powell would, and when he went with the big rate cut, everyone in the market chickened out, fearing that Feds must be seeing a recession coming. And next day, everyone remembered no one knows nothing and went risk on in post nut clarity.
MaRkEt MaNiPuLaTiOn!!!!
Burn that premium!!! Itm, atm, otm… don’t matter when can be burned Amy which way needed
First reactions and swings are algorithms. Than there is the press conference and the market closes shortly after that. Than you have the real people have meetings whether or not the rate cut was bullish or not combined with powells statement. Than you have the buying after hours.
https://preview.redd.it/zwra1xp85iqd1.jpeg?width=540&format=pjpg&auto=webp&s=148262be10113ea8b7a240963e1fae32d9ab97c2
they knew OP had already sold his calls at a loss
Cause the morons at the controls were asleep on the job.
Explained here:
[https://www.youtube.com/watch?v=YocCPKO-aoE&t=27s](https://www.youtube.com/watch?v=YocCPKO-aoE&t=27s)
[https://www.youtube.com/watch?v=YocCPKO-aoE&t=326s](https://www.youtube.com/watch?v=YocCPKO-aoE&t=326s)
This is a perfect example of something not being priced in…the market was really confused as to the state of the economy as a bullish or bearish sign hence the gyrations after the announcement
Institutional racism
There were millions of combined 0dte itm, atm and otm calls purchased across SPY, QQQ, and other ETFs with 0dte options enabled on Wed expecting the gap up, you think MM will let them print?
But the real answer is “It’s because you bought”
LOL. You and your paper hands