macrocephalopod

Even when the market is open, all the price discovery happens in futures. SPY is a sideshow. Don’t get me started on the constituents.

when market is open there is no difference between spy and futures... you can’t be saying that all the price discovery happens overnight!

I’m saying the the futures lead the etf intraday (at HFT timescales) because they are the more liquid market.

i had heard spy was more liquid that futures. (obviously.. i know nothing.)

fairly sure that spy during market hours is more liquid than futures in the middle of the night

why are not comparing during the day to middle of the night we're comparing middle of the night to nothing. /ES certainly more liquid than spy when SPY is not trading at all.

well by this analogy why not just hedge aapl option positions with jpy overnight... the point is that in situations when overnight prices aren’t reliable indicators of actual pricing in normal market hours then may not be optimal to base trading decisions on such

I mean if you face risk constraints and *have* to hedge sure. but if not then why (if you think futs untethered from actual spy price)? it’s like if you face risk constraints then sure close your gme short at 500, but if not then probably better remain unhedged