I noticed that on thursday or friday expiration I notice some stocks crash hard price was if its trading around one of the strikes and lots of open interest on the call. Like GE I notice it was hovering around 14 and the call open interest was high and now a big plummet under 14. Is there some kind of way things go. with calls. like big shortselling or unloading of stocks prior to expiration? GE seems to do this usually I have noticed.
There's a good book just out about trading around expriation - Trading Options At Expiration (of all things) by Jeff Augen
GE is a poor example. With strikes every point, the stock is always trading near a strike price. the answer is 'no' This does not always happen. If you are thinking of trying to profit from this, be very careful. You have not discovered anything. Mark