Huge market movement in last ~25 minutes


I’m looking for some clarity. Listening to CNBC yesterday, they were commenting on the near total, sharp market reversal yesterday was d/t “automated” buying in the last minutes of the market being open, somehow linked to the end of the month and institutions.

Here’s my question: Large institutions know they’re going to buy in the final minutes of market open, are they holding those orders all day? Is it purely institutional buys or a mix? Could they not buy up a ton of dirt cheap calls minutes from expiry on say SPX and make a fortune each time?

Apparently these are not abnormal market movements and not illegal. So if it’s not manipulation then why aren’t they buying calls on top of their huge, deliberate end of day market buy ins?

Genuinely curious.


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