Options Symbol Change: Some Tricks
How to Properly Display New Symbols
Dear Bottarelli Research Member,
After spending the morning on the phone with tech support, I’ve discovered some little tricks and nuances that were not properly communicated when the options symbol changes were implemented. Knowing these tricks are essential for displaying your new symbols, so I’m passing this information along to you as quickly as I receive it myself.
Trick #1: First, it’s essential that you begin every new option symbol with “O:” – not zero but rather the letter “O” to designate that the symbol that you’re about to type in is an option. Differentiating between a zero and an “O” could be an easy source of confusion – one which was not made clear from the exchanges.
Trick #2: Next up, it’s also essential that you end every strike price with two numbers after the decimal. For example, when typing in a February 50 put, you must type it in as 50.00. If you do not place the extra two zeros, your quote will come up as invalid. In my view, this was also not properly communicated by the exchanges and it took a 30 minute wait on the tech support line to get this information.
Using both tricks – in combination with the new symbol methodology I explained to you last week – should allow you to properly display your options quotes an a real-time ticker screen. Just so we’re all clear, here is a complete rundown of the options we’re currently holding, followed by the new symbol (displayed exactly how you would type it into your real-time ticker).
CTRP Earnings Strangle
- CTRP February 32.50 Calls (O:CTRP 10B32.50)
- CTRP February 30 Puts (O:CTRP 10N30.00)
CYOU Earnings Strangle
- CYOU February 35 Calls (O:CYOU 10B35.00)
- CYOU February 33 Puts (O:CYOU 10N33.00) – Sold for $2.20
CMI Earnings Strangle
- CMI February 47 Calls: (O:CMI 10B47.00)
- CMI February 45 Puts (O:CMI 10N45.00)
Downside Protective Hedge
- DXD March 30 Calls (O:DXD 10C30.00)
Bryan is Stubborn and Doesn’t Want to Sell
- ICE February 105 Calls (O:ICE 10B105.00)
- MOS February 60 Calls (O:MOS 10B60.00)
Going forward, I’ll keep you fully informed as the day progresses. But hopefully, this should save you some headaches when figuring out the new symbol listings.
Oh, and if you’re a disciple of the Stock Trader’s Almanac (as I am), then you know that January’s close (either up or down) has a strong history of determining the year-end direction of the S&P 500. According to the Almanac, there have been 21 down Januarys since 1953. Of those 21, 16 ended up closing lower at the end of the year. This 16-for-21 mark represents a 76% accuracy reading. As you know, January of 2010 ended in the red, which gives you a better than 75% probability that 2010 will be a down year for the S&P 500. Just some food for thought to start your week.
And as always…
Lock and load!
Sincerely,
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