SPY was down but still put showing loss. Any reason?

[hballa]

Hi,
I have been observing that some scenarios, appreciate if you can clarify.
Example:
Bought options yesterday
.SPY250421P515 @2.9
.SPY250417C533 @1.65

SPY was down but still put showing loss. Any reason?

sometimes there would be very good move on option price.

 

[rad14733]

@hballa In order to understand the big picture on Options, especially when buying OTM contracts with time remaining, we have to take the Greeks into account... An OTM contract can, in fact, move opposite to underlying price action or remain static... You never included the number of Open Interests or Volumes of the contracts mentioned and those are moving targets throughout each day as more contracts are either sold (increasing Open Interests) or exercised (decreasing Open Interests)...

 

[hballa]

Hi @rad14733 , thanks for your response. here is screenshot.

 

[rad14733]

Hi @rad14733 , thanks for your response. here is screenshot.

Ok, but that data doesn't help unless that snapshot was taken at the exact time you noticed any discrepancies... All of those numbers change on a minute by minute basis, which was more or less the crux of my initial answer...

Options are strange beasts... Back in the early 1990's when I was trading using DOS based software and satellite dish real time data I used to export data at various points throughout the day and render reports to find unusual anomalies, including contracts that had either low or excessive changes... That was when volumes of all trades were a fraction of what we see now every day...

While perhaps somewhat anomalous, I wouldn't be alarmed or concerned... Again, it's part of the nature of the beast...

 

[drkl]

Perhaps related to the falling $DXY, but what do I know.