Tag: options expiration

Option Expiration Week

Ah, yes…option expiry. Let the frustration begin! I love hearing stories about how people’s positions are “screwed over” by the option traders trying to pin a strike. Do pins really happen? Sure. As Adam Warner points out in his book, a good rule of thumb is the higher the volatility, the less likely the stock

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Option Watch

Look at the option chains for the stocks listed below as their option activity has seen some tremendous increase today. Typically you can see what others are thinking by looking at the option volume and perhaps see some institutional action as well. As an example, Meadwestvaco Corporation ($MWV) saw 5,000 calls go out at the

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Option Watch

Look at the option chains for the stocks listed below as their option activity has seen some tremendous increase today. Typically you can see what others are thinking by looking at the option volume and perhaps see some institutional action as well. As an example, Expeditors International ($EXPD) had a 12,000 contract strangle for May

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Classic Short Covering

What we saw today in the last hour or so of trading is an example of a short cover rally. As soon as the S&P broke the morning highs, the buying to cover ensued. That is a logical place to put both orders to buy to get out of a short and buy to get

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