Jimmy: A certain amount of that last-minute selling on Friday was option writers, trying to drive the price down as much as possible. There were a ton of in-the-money calls outstanding, representing a couple million shares of stock. The motivation to shave a point or two off the price had to be strong! And, at the close, if you're a short a bunch of calls, selling into the pre-weekend, post-triple-witch profit-taking is a cheaper way to lessen your exposure than by trying to buy those calls back!
Call it price-manipulation, or whatever you want, but I'm sure it happens all the time with issues that have rich options. Anyway, however many in-the-money options were open at the close will be executed this weekend and all those shares change hands, or the money does, anyway. Not sure, but I'll bet that has a very positive effect on trading Monday. Priming the pump, as it were... |
