OEX Exercise.
Let's say the O.I. on all July OEX calls is 30,000 of which 25,000 are ITM
When you exercise a call on DELL you get 100 shares of DELL. When you exercise an ITM OEX 570 call with OEX at 580, for example, you get $1,000 cash. Naturally, they don't ship over stock.
So, if the O.I. changed from Thursday morning's 30,000 to Friday morning 9,000 (for example) then it may be presumed there was an exercise of 21,000 contracts. Rather large by comparison and it would take the pressure off buy programs in the late day.
If on the other hand, only 5 or 10 thousand were exercised then the potential is there for heat in the late day.
How's that? |
