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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: DebtBomb who wrote (88813)11/9/2007 12:49:45 PM
From: Perspective  Read Replies (2) of 110194
 
Options expiration next week. That means the criminals have plenty of motivation to throw money at the futures to hold things at max pain. That and the oversold conditions say it's pretty likely we see a meaningful short covering rally next week by Thursday.

I actually think some of the selling is these guys getting a stash of cash ready to goose prices for options expiration. Sell 'em so they can buy 'em. All that matters to the option writers is the price a week from now, and you can print almost any price you want at a given point in time as long as you plan ahead.

BC
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