Options expiration pin action a myth?

Any idea? Is this BS created by Cramer?

 

Pin risk is real -- not necessarily related to market or cramer risk.

 

one thing i'll say about that if you are relying on iqauto. I don't think they are very accurate. If you know how to calculate the numbers yourself, go around to a few options chains and you'll find they can be very different from one another.

If anyone here has manually calculated the strike pin for any major index, PM me and I'll show you what I mean by different results depending on vendor/options chains.

 

You are giving Cramer way too much credit. Pinning is real, but it wasn't discovered by Cramer!

 

Maybe not discovered but he was a pioneer in bringing awareness of the game to the public.



http://www.thestreet.com/comment/wrongtactics/10399.html


http://www.thestreet.com/comment/rewrite/703618.html


Fwiw, it is not much about pinning anymore. It is more about moving the underlying in order to sell premium naked.

 

Well, I don't know how the article from 1997 proves anything, but who cares...

 

My point is he did not invent it, but whe was one of the first to bring it to the public's attention, have you seen it posted to the public before 1997 ?

 

I haven't looked! I get your point, though.

 

Has Cramer maniacally declared that the S&P will rally up to 1500 because of the large open interest in the December-SPX-1500 calls and puts?

 

Pin risk was described in many option books way before that. Well, maybe that's not 'the public' ...