What is a Stock Market Index IMPLIED OPEN?

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FINANCIAL TERMS AND DEFINITIONS FOR PHYSICIANS AND ALL INVESTORS

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By Dr. David E. Marcinko MBA CMP®

https://certifiedmedicalplannerdotorg1.files.wordpress.com/2012/03/cmp-logo17.jpg

SPONSOR: http://www.CertifiedMedicalPlanner.org

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The stock markets have been near all time highs, lately. Physician colleagues and clients are so excited that they are even checking the overnight status of favorite stocks and/or the domestic/overseas markets.

US Stock Futures

DOW Futures

407.001.17%

  • Level35,191.00
  • Fair Value35,124.36
  • Implied Open66.64

S&P 500 Futures

36.250.82%

  • Level4,465.25
  • Fair Value4,477.37
  • Implied Open-12.12

Nasdaq Futures

107.000.71%

  • Level15,144.25
  • Fair Value15,286.71
  • Implied Open-142.46

Data as of October 15, 4:59 PM EDT. Based on — contract. Fair value provided by IndexArb.com.

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Some colleagues are even becoming a bit OCD by checking the implied open of various markets the night before. But, what exactly is the Implied Open? How is it calculated?

DEFINITION: The Implied Open attempts to predict the prices at which various stock indexes will open, at 9:30am New York time. It is frequently shown on various cable television channels prior to the start of the next business day.

Product Details

CITE: https://www.r2library.com/Resource/Title/0826102549

EXAMPLE: Considering the DJIA as an example, the basis of calculating implied open is the price of a “DJX index option futures contract”. This is not the price of the DJIA itself but rather the current ticker price of an option issued by the Chicago Board Options Exchange.

CBOE: The Chicago Board Options Exchange, located at 400 South LaSalle Street in Chicago, is the largest U.S. options exchange with annual trading volume that hovered around 1.27 billion contracts at the end of 2014. CBOE offers options on over 2,200 companies, 22 stock indices, and 140 exchange-traded funds.

CALCULATION: https://www.quora.com/How-do-you-calculate-the-implied-open-from-futures

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CNBC on Twitter: "US stock futures extending losses, point to Dow opening  lower by more than 870 points, S&P by 80 and Nasdaq by 150  https://t.co/oEUrsK8Oop… https://t.co/Yt7I4yvKFf"

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NOTE: We would like to remind you that new amendments adopted by the U.S. Securities Exchange Commission (SEC) have gone into effect as of September 28, 2021. These amendments restrict the ability of market makers to publish OTC quotations for those companies that have not made required current financial and company information available to regulators and investors.

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YOUR COMMENTS ARE APPRECIATED.

Thank You

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