NYSE Volume Down 27% From Jan 2011 OPEX

Tyler Durden's picture


While much will be made of the spurt in volume today - to its highest of the year - we present without too much comment the comparison to last January's OPEX volume. Today's volume is an incredible 27% below the January 2011 Option expiration volume...

Charts: Bloomberg

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Fri, 01/20/2012 - 17:16 | 2082381 King_of_simpletons
King_of_simpletons's picture

HFT Algo versus HFT Algo.

Fri, 01/20/2012 - 17:57 | 2082519 CPL
CPL's picture

Bagholding HFT Algo versus Bagholding HFT Algo.


There you go.  Fixed.

Fri, 01/20/2012 - 18:30 | 2082619 rocker
rocker's picture

 You got that right "CPL".  And they are holding big time.

 If one observes how stocks act, one can just watch the volume explode on a downtrend.

 Take stocks like HGT, UPL, GEN, SWN, CCOI, SJT and GNOM. The volume expodes on the downside.

 Just one more observation. Market bottoms bring low volume because of No More Sellers.

 Market Tops bring low volume because of No More Buyers.  The End May be Near.

Fri, 01/20/2012 - 18:41 | 2082643 CalibratedConfidence
CalibratedConfidence's picture

Buyers are there.  Bad HFT excel at buying at the REAL low, which appears as a still falling price to those not colocated when they stuff the exchanges.  Think millisecond delays:


Fri, 01/20/2012 - 17:17 | 2082383 HedgeAccordingly
HedgeAccordingly's picture

and the game continues.. until next week - ladies - http://hedge.ly/gFWVSm

Fri, 01/20/2012 - 17:39 | 2082417 Cdad
Cdad's picture

The criminal syndicate known as Wall Street not only killed the US housing market...they have killed the capital markets in the US entirely.  So as they clamor for more money printing at the Fed...what they are seeking is the last and only buyer of the worthless assets they now hold...because much to the chagrin of established thinking, Average Joe well understands that there currently is no market to invest in...resulting in the failure of capital formation.

Soon...the Lear Jet exodus, promptly followed by Average Joe's complete and utter repressed rage when he discovers that bankers have also...killed the entire nation, economically and morally speaking.

And then...hello FEMA camps!

This is the wasteland that J. Dimon and L. Blankfien and Ben Bernanke have made for us.


**this is the most important story of the last few weeks/months/years as it speaks to the complete collapse of confidence in Wall Street...which is why Bob Pisani over at the BlowHorn[CNBC] will, after mentioning low volume, constantly say, "Look, the important thing is..." right before he goes off on some cheerleading chant about the economic recovery.**

Fri, 01/20/2012 - 17:48 | 2082490 luna_man
luna_man's picture



Hey, "cdad"...No! No! No!...We can start with those three, but, I'm after a WHOLE LOT MORE!



Fri, 01/20/2012 - 19:25 | 2082753 slewie the pi-rat
slewie the pi-rat's picture

are you going thru TV withdrawal?

L0L!!!  like the cop told me earlier this week, stop means stop!

i wonder if [re-]hypothecation and derivatives are keeping volume down?  if you're writing options on your equity for income in a world of bullshit zirpish returns, if you sell the stock, you are swimming naked in the options pool, not the bathtub!  hmmm...
...but, turns out option volume was down last month (dec) y-o-y, but lQQk where that info is from:  The Options Industry Council Announces December Options Volume Down 6% While 2011 Volume Sets Ninth Consecutive Record - Yahoo! Finance

(paste) A Review of 2011 Records

In addition to hitting new annual volume records, these records were set last year.

  • Highest single trading day in 2011 for total options: August 8 with 41,535,560 contracts
  • Highest single trading day ever for equity options: August 8 with 37,972,071 contracts
  • Highest monthly volume: August with 550,049,407 contracts 
  • Average daily total options volume: 18,106,144 
  • Average daily equity options volume: 16,764,304

holishitoli! could slewienomincs have a future?

Fri, 01/20/2012 - 20:42 | 2082935 Cdad
Cdad's picture

No withdrawal at all, Slewie.  Loving the silence at my trading desk.  Getting all the news I need from other sources.  Cursing [at the TV] is also way down, and I prefer a more civil me.

Others told me a long time ago that my trading would improve if I quit the BlowHorn [CNBC] consumption.  They were correct.  Now...I occasionally catch a BlowHorn tweet...and those are as full of bullshit as their programming is...funny.

No more Bob Pisani here...no no.  And best of all...no more mindless J. Cramer rants.


Fri, 01/20/2012 - 21:24 | 2083032 slewie the pi-rat
slewie the pi-rat's picture

L0L!!!  we were still writing abt it on the chasHSmith string abt media propagananda from this morning, a short while ago

i didn't think you were a backslider, Cdad!

you may tell the other traders that slewie has given you credit for a 12-step meeting! Hahaha!


Sat, 01/21/2012 - 14:07 | 2084373 breakyoself
breakyoself's picture

I rarely watch CNBC and other business shows (all noise), but it seems whenever I turn to CNBC it's when Bob Pisani is doing exactly what you stated or how the Europeans are going to get their stuff together. Give me a break! I just can't imagine anybody watching an entire business show other than to induce sleep or they like to hear BS repeated a hundred times.

Fri, 01/20/2012 - 17:35 | 2082444 ceilidh_trail
ceilidh_trail's picture

Low volume= low stock prices? Gee, a sale! I'm all in with Robo! Buying at the peak should be a fun ride, right? Right???

Fri, 01/20/2012 - 17:46 | 2082468 Zero Govt
Zero Govt's picture

Emergency.. "Oxygen ...Oxygen ...Oxygen"

Dow, S&P and Nasdaq gasping ..Europe's comatose too

Calling Thunderbird 6, Blowjob Ben, at International Rescue

Fri, 01/20/2012 - 17:45 | 2082476 barliman
barliman's picture


Take out the huge pre-market spike and the trades reported from the dark pools ... and today doesn't look that impressive.

Take out the institutional investors buying more IBM on top of that ...

Oh, we had a way below average day.



Fri, 01/20/2012 - 18:04 | 2082541 Cognitive Dissonance
Cognitive Dissonance's picture

"Today's volume is an incredible 27% below the January 2011 Option expiration volume..."


"That just makes it all the eaiser to manipulate you my dear."

(With sincere apologies to Little Red Riding Hood)


Fri, 01/20/2012 - 18:10 | 2082562 Boilermaker
Boilermaker's picture

PSSSST:  They're going to do it again and again and again and aga....

This shit is so blatant that it's pointless to even pretend that it's going to stop.

I'm still just amazed that NOBODY (except the NY Post) calls bullshit on it. 

Fri, 01/20/2012 - 18:18 | 2082583 random shots
random shots's picture

Here is a stupid thought...Perhaps the robots have reduced their trading volumes.  I am open to reasonable arguments as to why this would not be the case. 

Fri, 01/20/2012 - 18:27 | 2082612 luna_man
luna_man's picture



"Boilermaker", patience...

We should see an opportunity, next week...






Sun, 01/22/2012 - 02:35 | 2085943 resurger
resurger's picture


You know the sales "Probably Rose", The markets unexpectedly "Rose" 

Fri, 01/20/2012 - 19:02 | 2082700 ekm
ekm's picture

I think that sharks like JPM, BAC, GS, MS trading desks almost out of money and have bought anything that could be bought. Next hope is waiting for a crop of institutional idiots to buy the whole market higher.

But the past idiots have been getting out of the market for 33 out of 35 weeks. The sharks are hoping that Greece's "solution" will make the idiots come back. However, since Greece has become irrelevant now, it's Italy and Spain that is in past idiot's mind.

I understand why Janjuah is calling for S&P at 800. No more idiots until Italy and Spain are solved.

Fri, 01/20/2012 - 19:09 | 2082717 ekm
ekm's picture

It feels like we'll at first some 50 sp points in two days collapse very soon. Once a couple of weak hands sell off, than the attitute of "they know sth I don't know" sets in. No need for trigger news.

Fri, 01/20/2012 - 19:56 | 2082844 BlackholeDivestment
BlackholeDivestment's picture

...calculating volume within the zero interest black hole. 0 x Volume=1984/2+2=5

Fri, 01/20/2012 - 20:28 | 2082901 f16hoser
f16hoser's picture

POMO's and ALGO's; is there a problem here? Buy Gold/Silver bullion and enjoy the ride. Only Dumb-Shits (US Politicians) invest in US Stock Markets.....

Fri, 01/20/2012 - 20:36 | 2082916 Mark123
Mark123's picture

The only volume that matters is how much new money is coming into the market.  Trim Tabs tracks this and from what I understand there is an outflow of money except for corporations buying back their own stock (with cehap borrowed $'s).  Sick market is an understatement.


As far as volume is concerned, with HFT surely the primary dealers and dark pools can create as much or as little volumne as they like just selling to each other.  Isn't this how they ramp prices into the close each day in Europe and US?



Fri, 01/20/2012 - 20:51 | 2082952 Tsar Pointless
Tsar Pointless's picture

I have said it before, but I don't mind saying it again.

This time, I will yell.


Get retail out. Makes it easier to move the market in your (i.e. Bennie and His Ink Jets') direction.

Which, preferably for them most of the time, is UP UP UP.

Fri, 01/20/2012 - 23:12 | 2083262 barliman
barliman's picture


You are falling into the trap of a teleological argument (e.g. giraffes grew longer necks so they could eat leaves at the top of trees) where the result is seen as having been based on intentional action. The reality is that giraffes that were born with longer necks had a better survival/reproduction rate than the shorter neck giraffes that were not able to reach the leaves at the top of the tree

Chairman Ben did not set out to drive the retail investor out of the market. His intent was to reflate the U.S. and global economies to the artificially high levels that were the result of the credit bubble. The fallacy of his approach is that a consumer driven economy where more and more of the consumers are unemployed and are not deleveraging but are having credit stripped away from them involuntarily - are not able to go back to consuming like it is 2006.

Bernanke's incompetence is based on not realizing that banks that are GIVEN FREE MONEY (QE1 - par prices (1.0) for bulk assets worth 0.50) have no incentive to risk any of that money by loaning it to consumer's ... or other banks. They are, rather, disincentivized when you pay them a premium for buying the government's debt (QE 2), holding it for a week or two, and then selling it back to the government at a profit.

He is now the hostage of the "banks" because they can crash the global markets at any time - and they can make a ton of money from doing it since they (pay attention now) are THE MARKET MAKERS. The retail investors (who in a perfect market would be a counterbalance to the banks)  that have "survived" have absented themselves from the market BECAUSE they know who the market makers are and how completely the market makers can manipulate everything. The retail investors that have survived have learned to avoid the rigged game.

Ben thought he was smarter than the "banks", the other Central Bankers and anybody alive during the Great Depression. He has from day one demonstrated the truth of the old saying:

"Never attribute to cunning and malice that which can be achieved through mere incompetence."


Sat, 01/21/2012 - 07:22 | 2083797 koperniuk666
koperniuk666's picture

the only way to win is not to play  


Sat, 01/21/2012 - 10:49 | 2083983 Cursive
Cursive's picture


He is now the hostage of the "banks" because they can crash the global markets at any time - and they can make a ton of money from doing it since they (pay attention now) are THE MARKET MAKERS. The retail investors (who in a perfect market would be a counterbalance to the banks)  that have "survived" have absented themselves from the market BECAUSE they know who the market makers are and how completely the market makers can manipulate everything. The retail investors that have survived have learned to avoid the rigged game.

Damn fine post.  You succinctly and eloquently stated Bernanke's Dilemna.  So much for free markets and capitalism.

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