from Price Headly's 'Big Trends' newsletter this morning:
(he excludes MSFT for some reason)
"Friday marks the April options expiration, and within the context of the short-term bounce we are seeing, it is useful to know the key open interest levels to watch where stocks should settle on Friday. Here are some of the most critical levels we're watching:
QQQ (35.20) - 35 is key, as 115,907 April 35 calls exist, along with 79,699 April 35 puts. We expect the QQQ to trade plus or minus a point around 35, with a settling right near 35 at the Friday expiration to make both sides go out nearly worthless.
INTC (29.51) - 30 is huge, so good news aside, don't expect the stock to close much above 30 on Friday's expiration. There are 90,352 April 30 calls open and 104,977 April 30 puts open. A finish at 30 at Friday's close would send both of these options headed to their ultimate support - at zero.
MERQ (39.01) - 40 is big, stock had a great reaction to earnings, but 15,944 April 40 calls dwarfs any other activity. We bet the stock holds 40 as resistance as Friday's close.
CSCO (15.58) - The stock cleared 15 by more than 1/2 point, which is short-term bullish, and there is no overhead resistance until the 17.50 strike where more than 100,000 April 17.50 calls are set to go out worthless on Friday. For once, CSCO has a shot at an expiration week rally as long as it holds above 15.50, which avoids the magnet effect back to the 15 strike."
larry |
