options exiration week

Discussion in 'Trading' started by larrybf, Sep 21, 2003.

  1. i have noticed that for the emini futures , options exiration week seems to almost always have a positive expectancy..... regardless of the overall trend leading into the week... STOCKTRADERS................. is this same thing also happen in the stock market?????
     
  2. No. During expiration week stocks have no correlation at all with stock index futures. We call this the "quadruple witching divergence paradox". The most probable explanation is that all arbs take the week off in order to reporgram their systems for the new expiration month.