Options Action Around Expiration Time

Discussion in 'Options' started by StockHustler, Oct 11, 2007.

  1. Wanted to know if there were any trends or any advice from you experts on how options act around expiration. Specifically, how would November options act when the Octobers expire. Are there any sever price fluctuations? Any advice? Thanks.
     
  2. No one has anything to say about this topic?
     
  3. Logic would say that many people will roll their options, so the next month ones may see increased demand, and perhaps a slight price increase.

    Altough I'm unaware if there are statistics on this.
     
  4. I don't think that current month expiration has much if any of an effect on next month's series. IMO, daily price movement and IV changes will far outweigh any expiration effect, if any.
     
  5. tvgram

    tvgram

    I saw one of the free "Inside Wire" webinars on www.discoveroptions.com where one of their Mentors, Chris figgy, (who has traded off floor many years plus was a market maker on the floor) said that the Volatility skew curve begins to shift up for the second month options on or about Tuesday of expiration week as more and more people begin trading that month and/or roll positions into it.

    So that would mean it may be bit cheaper to buy those options on the Monday or earlier (all other things being equal of course, since as a previous post said you may not even notice it because the increase in IV could be overwhelmed by changes in other variables such as the price of the underlying)