Options pin and high Open Interest?

Discussion in 'Options' started by noob_trad3r, Dec 16, 2009.

  1. Is there something that goes on with strike prices and huge OI.

    I notice that with the DEC 16 call it has a huge amount of OI compared to the other strikes and that some kind of barrier forms at that price that sort of keeps it from going up to 16+

    I have noticed this lately with the ge calls I have been writing that have huge OI compared to the others.
  2. It's a combination of delta hedging, gamma scalping, premium selling, premium buying and a positive feedback loop that continually attracts the attention and money of more and more traders. :cool:
  3. put bullets and short calls.