Because Nothing Lasts Forever

Well we have expiration on tap next week, though raise your hands if you think it feels like an exciting one. On average, expiration week does see modestly more volatility than a typical week. But heading into it with volatility getting hit the last couple weeks is not a good sign as it implies traders and other active hedgers are net owners of options paper.

What happens when they own paper? They likely need to flip stock against it. And if they’re in there flipping and it’s slow already, you’re not going to see much in the way of motion.

But this is all speculation, we could gap big on Monday and the options shorts will have to chase. So we’ll see.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

You might be interested in:
blog comments powered by Disqus

In partnership with CNN Money Part of the CNN Network