SPX option prices are moving on TOS

Discussion in 'General Discussion' started by status1, May 31, 2018.

  1. status1

    status1 Well-Known Member

    Anyone else notice the SPX option prices moving on TOS after hours ?
    I am trying to look at the P/L at EOD for today but it keeps changing It's going from -60 to 600 to 0 to -30 It's all over the place I am looking at it at 5PM EDT
    When I look at the closing price on the price slices it's not moving but the P/L for my trade is changing
    I looked at the trade tab and the short and long for my spread were both showing 5.8 on the mark so that's where the 0 came from
    Now my P/L is back to -30
    Is the SPX trading after hours ?
    I thought only the SPY is trading after hours
     
  2. Marcas

    Marcas Well-Known Member

    Happens all the time.
    I never thought (or called) about reason why it can be. While trying to stay with decent safety margin it doesn't bother me much, this behaviour can be a big issue when margin is tight.
    I'm interested as well if somebody can explain those swings with some knowledge.
     
  3. ACS

    ACS Well-Known Member

  4. status1

    status1 Well-Known Member

    I have to make a slight correction
    When both options were showing 5.8 that would be 0 but my p/l would actually show max gain at 660 not 0

    As far as the option prices changing I guess that may be normal at that time of the day even though the markets are closed
    If I look at the 1 minute chart I see price activity in SPX up to 4:20 PM but I guess that's probably unofficial so I guess there is probably some residual option activity a little bit after that I was just not expecting to get max gain with the t+0 line below the expiration
    Another reason could be that normally I would check the p/l after I get home from work around 6 PM so the prices settle down by that time so because I am at home on vacation I happened to check the prices a little bit earlier at 5 PM so I am guessing the option prices were still in the process of settling
    I sent TOS an email today to see if they know anything about this
     
  5. status1

    status1 Well-Known Member

    Here is the response I got from TOS

    "Great question! I called our Trader Team and found out that option activity occurs between firms after the market closes. Since Friday is an expiration day for certain SPX contracts, firms carryout expiration requests and settlement transfers after the market closes. Firms cannot do such activity until the market officially closes, as they need to know which contracts are in the money and which ones are out of the money."
     
    Harry likes this.
  6. Marcas

    Marcas Well-Known Member

    Thanks starus1 for effort although their answer explains nothing. Movement of options does not suppose to change closing print a penny.
     
    Harry likes this.
  7. status1

    status1 Well-Known Member

    You are correct as I also mentioned that the closing price did not change but the option prices changed and thereby affecting the p/l
     
  8. Marcas

    Marcas Well-Known Member

    I still don't know why options prices do change while market is closed. To be precise I only observed NetLiq value changes didn't look at any particular chains.
     

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