"Options Manipulation"
Eh, ..
I just was too cryptic with my writing. The comment was something like, " since options were expiring, the price of the stock itself jumped because the option expired that day.."
What I was trying to say was..if the rise in price was a function of option expiration, i.e. if the price move was an attempt to somehow affect the price of the option on the last day to trade the option, you would see a price of the stock hovering around the strike price, NOT around 18 to 18 1/2. Some people with guts bought the 17 1/2 Nov Call at 1/16 Thursday, to see it ultimately get about six times that price one day later!! In October, AMZN hovered around 100 all day (101 to 97) on the last day to trade options, hosing down the puts AND calls at 100 with equal gusto. I would characterize THAT price action as stock price manipulation seeking to snuff option holders. I was trying to say, CIEN price for Friday was NOT the type of move characterizing an option-expiration move. More to the Ciena story than that, I believe.. (whew!) |
