Gary, (S&M for options aka Point'O Pain)
I've read you comments regarding the effect, if any, of the open option interest on stock price as expiration approaches. I think you should take another look at this, maybe with some revised expectations.
As pointed out by others, recent strength, news, momentum, etc have somewhat overcome the claimed effect in recent months. However, I suggest that the effect was present, but manifested as a drop to within 1/2 or 5/8 of the "pain point" during the week prior to expiration rather than the stock price being pegged at the "pain point" on expiration Friday. I don't think we will retreat back to 26 this week, but I don't want to bet against the "magic" options effect either(at least in my trading account). I won't be buying again this week unless we get below 30. Next week is a different story.
Not being argumentative, just sharing my thoughts,
Markas |
