$prem & $eprem

[TURLIES]

Hi all,

Does anyone know how the $PREM & $EPREM are calculated? Also, are there any resources (websites, books etc) on how to daytrade with them - i've searched the web but couldn't find anything thats strategy based, and i already know about the programtrading.com website.

Thanks,
Paul

[ACM]

Re: Reply to post '$prem & $eprem'

Paul
$PREM is SP my - $SPX and $EPREM is ES my -$SPX
Alex

[TURLIES]

Hi Linus,
I already know about programtrading.com (see my first post), and have already searched on Google. Haven't tried Yahoo yet.

thanks,
Paul

[TURLIES]

Hi Alexis,
If i understood your calculation correctly, i've already tried ES U3 (or ES #F) - $SPX.

This produces totally different figures from $EPREM. $EPREM must have interest / dividends calculated within it or something.

Paul

[ACM]

Paul
Aside from some small differences due probably to the timing of ticks in the spread the plots seem relatively close at my end.
Alex

[gspiker]

AFAIK Alex is correct in his calculations.

I have traded with PREM extreme's for many years. The thing to understand is that arbitraders will not always step in at extreme's as expected. I would say that they do in better than 90% of the cases, but if the market is in crash mode, don't expect PREM to help you trade.