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To: GVTucker who wrote (174683)4/13/2005 1:13:39 PM
From: Sig  Respond to of 176388
 
>>A stock will trend toward a strike price right before expiration, but that is an issue only a couple of hours before options expire, not a couple of days.>>

I guess we will disagree on that one.
Over the years the impression I get is that the stock price set for stock on options Friday has gradually moved earlier in the week.

Once it was Thursday , then Wedns, then Monday or Tuesday.

No way to prove it,but I try to dispose of any options holding by Tuesday.

Like most rules, its bound to fail.
But I think I lose less in using it, and it definitely relieves the pressure for Friday (g)

Sig



To: GVTucker who wrote (174683)4/13/2005 1:13:40 PM
From: Sig  Read Replies (2) | Respond to of 176388
 
>>A stock will trend toward a strike price right before expiration, but that is an issue only a couple of hours before options expire, not a couple of days.>>

I guess we will disagree on that one.
Over the years the impression I get is that the stock price set for stock on options Friday has gradually moved earlier in the week.

Once it was Thursday , then Wedns, then Monday or Tuesday.

No way to prove it,but I try to dispose of any options holding by Tuesday.

Like most rules, its bound to fail.
But I think I lose less in using it, and it definitely relieves the pressure for Friday (g)

Sig



To: GVTucker who wrote (174683)4/14/2005 5:59:26 PM
From: Amy J  Read Replies (1) | Respond to of 176388
 
RE: "A stock will trend toward a strike price right before expiration"

I'm very glad it does this when writing cov calls, but the question is, why does it do this so often?

There must be some reason, it looks more than coincidental.

Regards,
Amy J