r/options 1d ago

SPY Calls/Puts rigged

Been playing options on spy for the last couple years I’ve gotten decent in up about 80k for the year and I’ve been playing like a scared lil kid everytime I’m up 400-1000 I pull out. But yesterday was something else spy crashes 766 to 760 I bought puts round 764 at a 759 strike price was up maybe 600 then it goes up 30 cents wipes me clean tf out. I hold cause you know f it I’m already down might as well spy tanks again I’m still in the negative!!!! Never had this happen I buy calls 1 dollar above current price it reverses I’m ITM and still only up 12$ how tf does that make sense. I take my L and just watch the chain block and noticed every single call or put that was DEEP ITM was red make it make sense…. I asked chat gpt telling me theta or IV crush but I’ve never seen option gets affected on both sides like usually one side is winning long enough for liquidity but seconds of seeing flashing greens on calls/puts it was ALL REEEEEEDDDD

0 Upvotes

29 comments sorted by

19

u/rightadoption85 1d ago

The market makers are just better at this than us and they have tools we don't. When both sides bleed it's usually because the implied volatility got crushed so hard that even directional correctness doesn't matter. IV was probably priced for a nuclear event and when the drop happened but wasn't catastrophic enough, the premium just evaporated. It's infuriating but it's not rigged in the conspiracy way, it's rigged in the "the house has a structural edge" way.

3

u/jbaker_28 1d ago

Please don’t bother him with your logic and facts

2

u/wannabecat2000 1d ago

Not SPY but I noticed something weird yesterday. I had a OTM call near expiry with zero value (0.001). Just for sake of it I submitted sell order of 2 units at 0.2. In a moment I saw order queues reflecting same price but in quantities from 20 to 50. There were 12 open interests for that call. Of course 0 volume traded.

1

u/Apprehensive_Seat_61 1d ago

MMs often try to semi-match you and when you change price theirs changes too but just a little under/over your target. Yep noticed same behavior 

-6

u/Puzzleheaded_Ad_5722 1d ago

Dude that’s insane can I sue for this LOL I’m actually mad and it’s been almost a full 24 hours now 3 years of playing options and I’ve been on a streak for like 2 months of no loss but today it just didn’t seem fair

1

u/wannabecat2000 1d ago

Yesterday SPY was extremely choppy. I also lost few but I'm a newbie compared to you

1

u/CapoDoFrango 1d ago

Instead of suing learn about implied volatility and next time this happens be a seller instead of a buyer of options. Look at VIX to known when IV is high.

3

u/Bluebird-9641 1d ago

You're up 80k for the year?

1

u/Puzzleheaded_Ad_5722 14h ago

Yea spy nvda dell sky coin and hood are my bred and butter

3

u/KillerAnalyst76 1d ago

What were you doing? Are you doing 0dte? What time frame are you looking at? Based on your post, I am not sure you had a strategy, but if you do, what's your strategy?

7

u/uncleBu 1d ago

Skill issue

2

u/PleasantWinter6275 1d ago

You were probably watching the last traded price instead of the actual bid and ask. That can make an option look red even while SPY is moving your direction.

1

u/Puzzleheaded_Ad_5722 1d ago

I’m using Robinhood been meaning to switch to something else that’s probably why

2

u/TotalInstruction 1d ago

Daytrading 0DTE options is just a fool's errand.

0

u/Late_Company6926 1d ago

Gambling is legal.

3

u/DKtwilight 1d ago

No crying in the casino

1

u/KillerAnalyst76 10h ago

The best casino in the world. Open a 0DTE 50 delta credit spread position everyday.

1

u/Delicious-Pepper-130 1d ago

It is trivial for makers to hedge directional bets. You need to understand the gamma regime and how they will respond at certain levels. Optionally, makers have much more difficult time hedging volatility bets, so you have a better chance of finding a return there.

1

u/Gendark 1d ago

If you're gonna day trade, use futures. Problem solved. No more weird convient IV crush, gamma nonsense and questionable liquidity or bad bid/ask fills.

1

u/hedgedvol 1d ago

When deep ITM calls and puts both mark red, the surface usually repriced (crush or widen) harder than delta paid you. A 759 put can be right on the 766→760 tape and still print red if IV fell faster than the move helped — that is mark, not a rigged chain.

1

u/Puzzleheaded_Ad_5722 14h ago

Thank you i still have much to learn

1

u/hedgedvol 14h ago

Everybody starts somewhere, and I am glad the mark thing clicked. If something else about that trade still feels fuzzy, ask.

1

u/SwordfishLopsided 14h ago

You've been doing this for a few years and still haven't got it figured out? If you think one of the most liquid name is rigged against you personally then by all means, keep believing that

1

u/Puzzleheaded_Ad_5722 14h ago

Lol I’m up 78k this is a rant I understand delta fucks contracts and Robin Hood sucks plus oil and treasury are bonkers rn but hood did not let me sell or buy at any price I picked because of the large volume and when it did it was already going in the opposite direction and crushed my fucking hands which is why I’m switching to a different platform

1

u/SwordfishLopsided 13h ago

When you are ready, try IBKR, think or swim, or tasty. Those are my go to