I notice PPT only acts around Options Expirations Time

Discussion in 'Strategy Building' started by aeliodon, Oct 5, 2008.

  1. I remember the first 50bps cut after the BSC collapse was right around options expiration.

    The Fed/Treasury considering a bailout package was announced the day before expiration.

    Now I doubt they will continue to ramp up the markets before expiration - as that would be too obvious. But definitely this market will be substantially higher come around the October expiration. In the meantime it can go to hell.

    Selling naked puts is still the most crowded trade and always will be. Its what got AIG into trouble and they got a bailout. So there is an implicit fed backstop for this trade.