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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (596)	2/19/1999 7:13:00 PM
From: dealmakr	Read Replies (2) \| Respond to of 2317

Nate, Too many letters some times to keep track of. It should read. Bot OEYBE 5/8 Sold OEYBH 1/16 Net + 5/16 The position was closed out. I entered the OEYNE after closing the spread for a volatility play during the afternoon. Expiration day of options is one of the most dangerous and confusing days to trade the OEX. The market will have a great tendancy to move up and down or whipsaw many times as positions are put on or closed. If you look at a chart of the OEX for the last 2 hours of the day you can see what I mean. 15 minutes before the close the OEYND's were in the money by 2 points and expired worthless. In trading the OEX you can try and time the swings by using various indicators, I use intraday support and resistance levels of the Dow & S&P along with Tick and Trin readings of market strength. Also by getting an indication of open interest going into market exp. day you can see the so called max pain point where the most open options would expire worthless. Today it was OEX 620 and was notated on the MDA thread by some of the posters there yesterday. On expiration day, you don't want to put yourself into a position of being whipsawed and exercised at a big loss if short or miss your exit if long. I was very happy to get a point on my OEYNE's even though they ran 4 more after that. Watch the tape and your own indicators of the market to time your plays, but be careful on expiration day when the big money boyz come to play. Good Trading Dave