33

If you look at DISH's dividend history, you can see that on 20111101 DISH declared a special $2/share dividend payable on 20111201. The ex-date for that 8% dividend was... 20111115. The $2/share drop you saw from the 14th to the 15th was the stock going ex-dividend. So the stock options (which are American options) were deep in-the-money with a large ...


25

I may be underestimating your knowledge of how exchanges work; if so, I apologize. If not, then I believe the answer is relatively straightforward. Lets say price of a stock at time t1 is 15$ . There are many types of price that an exchange reports to the public (as discussed below); let's say that you're referring to the most recent trade price. That ...


14

Trading at the start of a session is by far higher than at any other time of the day. This is mostly due to markets incorporating news into the prices of stocks. In other words, there are a lot of factors that can affect a stock, 24 hours a day, but the market trades for only 6.5 hours a day. So, a lot of news accumulates during the time when people cannot ...


10

I don't have a formula for anything like this, but it is important to note that the "current value" of any asset is really theoretical until you actually sell it. For example, let's consider a house. You can get an appraisal done on your house, where your home is inspected, and the sales of similar houses in your area are compared. However, this value is ...


9

This is actually a very complicated question. The key reading in this area is a seminal paper by Almgren & Chriss, "Optimal Execution of Portfolio Transactions" (2000). They show that there's a tradeoff between liquidating your portfolio faster and knowing the value with more certainty, versus liquidating more slowly (and likely for a higher price) but ...


8

Open interest is a poorly named term and is not the same thing as unfilled resting orders in the marketplace. Rather than referring to people "interested" in trading the instrument, it actually means people who already have a vested "interest" in that instrument -- because they already own it. Specifically, open interest reflects the number of contracts ...


6

In a sense, yes. There's a view in Yahoo Finance that looks like this For this particular stock, a market order for 3000 shares (not even $4000, this is a reasonably small figure) will move the stock past $1.34, more than a 3% move. Say, on the Ask side there are 100,000 shares, all with $10 ask. It would take a lot of orders to purchase all these shares,...


6

There are two distinct questions that may be of interest to you. Both questions are relevant for funds that need to buy or sell large orders that you are talking about. What is the instantaneous price move that a large buy order causes? The answer depends on your order type and the current market state such as the level 2 order book. Suppose there are no ...


6

In the stock market many participants enter orders that are not necessarily set at the current market price of the stock (i.e. they are not market orders, they are limit orders). They can be lower than the market price (if they want to buy) or they can be higher than the market price (if they want to sell). The set of orders at each point of time for a ...


6

Short answer: because stock exchanges are not monopolies. Dark pools do deprive the market of price discovery, sometimes significantly. Dark pools exist because of low transaction costs and an owner or buyer of stock is not obligated to use a stock exchange. The primary reason for stock exchanges is providing market makers, entities always ready to buy or ...


5

The question is, how do I exit? I can't really sell the puts because there isn't enough open interest in them now that they are so far out of the money. I have about $150K of funds outside of this position that I could use, but I'm confused by the rules of exercising a put. Do I have to start shorting the stock? You certainly don't want to give ...


5

Here are two examples of people referring to such big players as "market movers": https://forums.babypips.com/t/what-is-the-difference-between-a-market-maker-and-a-market-mover/5123 A market mover is one of two things: 1) A trader or institution which trades in size sufficient enough size to push the market bid/offer around. http://socialize....


4

Members of the Federal Reserve System keep track of what money a bank has (if it's not in the vault), who owns what shares of stock, who owns what bond, etc. The part of the Federal Reserve System that tracks stock ownership is the Depository Trust Company (DTC). They have a group of subsidiaries that settle various types of security transactions. DTC is ...


4

I think if you are only trading stocks with average volume greater than 1M you should not have any trouble entering a 10,000 size trade. If you are you can try a couple of things: Change your order from a market order to a limit order, however this may potentially reduce the number of shares that are actually traded on that day, and you may miss out on some ...


4

Trading at the start of the day is highest because of news flows that may have come after the close of the previous day. And trading at the end of the day is highest because of expected news flows after closing hours. Moreover, there are many day traders who buy in the morning without making any payment for purchase and such traders have to sell by ...


4

A huge amount of money in all financial markets is from institutional investors, such as mutual funds, government pension plans, sovereign wealth funds, etc. For various reasons these funds do all of their trading at the end of the day. They care primarily that their end-of-day balances are in line with their targets and are easy to audit and far less ...


4

Well that would be relative to what you are looking to trade. If you were looking to trade say 1000 share of a company and the average daily volume was 50000, you might consider this stock is liquid enough for you to get in and get out without you moving the price much. But if you were looking to trade say 30000 of the same stock, then you would be trading ...


4

A stock price increase does not necessarily mean that more people are buying. Whenever a stock is sold, there is a buyer and a seller. So everyday the number of shares bought and the number of shares sold are equal to each other. The volume represents the number of shares that have changed hands during the day. The stock price represents the price at ...


3

There is no direct relationship between volume and stock price. High volume indicates how much stock is changing hands. That can be because people are enthusiastically buying OR enthusiastically selling... and their reasons for doing so may not agree with your own sense of the future value of the stock. Higher volume may mean that the price is more likely to ...


3

You are long the puts. By exercising them you force the underlying stock to be bought from you at your strike price. Let's say your strike it $100 and the stock is currently $25. Buy 100 shares and exercise 1 (bought/long) put. That gives you $7500 of new money, so do the previous sentence over again in as many 'units' as you can.


3

These statements aren't necessarily contradictory. In the first case, investors are bearish because they anticipate selling in the future (because all the interested buyers have bought, so all that remains in the short run are people willing to sell and therefore drive down the price). In the second case, the trend is strengthened because the increase in ...


3

One of two things is true: You own less than 5% of the total shares outstanding. Your transaction will have little to no effect on the market. For most purposes you can use the current market price to value the position. You own more than 5% of the total shares outstanding. You are probably restricted on when, where, and why you can sell the shares because ...


3

Log is logarithm. "Mean" is what most non-mathematicians call "average". So, assuming they mean exactly what they said: Gather values of the index you want to analyze. Convert the values to percentages (of what isn't clear). Take the logarithm of each of those percentages. Add those all up and divide the sum by the number of values you used. In my ...


3

It depends on the orderbook when you place your order, and how you place the order. If there's a sell order for more than 500,000 shares at a price that's agreeable to you, then yes, you'd buy in to that order and fill immediately. If there isn't a sufficient order at an agreeable price you'd have to either adjust your price to eat up the existing orders ...


3

There are some general patterns in the US stock market but in and of themselves, none of them are going to make you any money. Monday tends to be the highest volume day of the week since there's 3 days of news instead of one. Tuesday tends to be the lowest volume day. Mornings tend to trade higher volume due to accumulated weekend and pre-market news. ...


3

These are probably block trades. See here, and for Indian markets specifically here for more details on how block trades typically work.


3

Neither. If Person A, B, and C all transacted on the same trading day, the volume is 1 share + 1 share = 2 shares. Volume is not in $. Volume resets to 0 after each trading day.


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