SPY pinning

Discussion in 'Options' started by noob_trad3r, Feb 8, 2011.

  1. 94,882 131
    155,739 132

    Between the 131 and the 132 strike there are two big chunks of call outstanding interest

    with a bunch of interest on the 131 put.

    does that mean that on expiration the SPY will probably be at 132 maybe 131.80-132.10?
     
  2. no, much more complicated than this simple theory
     
  3. volente_00

    volente_00

    It's not about pinning.


    It's about selling premium on the swings to extremes of the ranges.




    129 -132 range for Feb



    outlier 128 - 133



    Would not be surprised to see a 131-133 range til oe


    The large open put interest from 125 up offers support short term but it can be wrong 10-20% of the time.
     
  4. tomk96

    tomk96

    large open interest can have an affect since that is where the long gamma people have the most gamma and theta. they are trying to scalp their gamma and can sometimes keep the range tight around a strike in a quiet market.
     
  5. good observation and good luck.
    If the world is so simple, all the us here are billionaire
     
  6. tomk96

    tomk96

    you must not trade options
     
  7. I know what you want, i won't bite .. :D

    Nothing to tell :cool: