My motto is...if a stock should be going up during a futures rally,but doesn't,go short when the futures turn back down;and if a stock should be going down during a futures selloff,but doesn't,go long when the futures turn back up.
call OI strike put OI 1026 45 8774 7735 47 1/2 10761 39500 50 22353 44298 55 43926 18358 60 5731 2482 65 1136
for those looking for swing plays on a possible multiday reversal, take a look at SBSA, USAI and RYL.
The most important indication is the OI in the at-the-money calls vs. puts. June is flat but there's huge gap in the July's.
Sorry I didn't make my point clear. What I was getting at is that I have noticed that as we get close to option expiration, there is a tendency for the price of the stock to gravitate toward (and often very very very close to) the strike where the large open interest is. In the case of MO, I was getting at that this could create a GRAVITATIONAL PULL (or tendency) to hold the stock price to the $55 area! As with any observation it certainly is not perfect. I just always try to have as much evidence in my favor as possible for any trade. I would be interested in observations (of any kind) others have found helpful in improving their trading accuracy. Sometimes the evidence I weigh convinces me to take a trade, but often just one additional piece of evidence convinces me to pass on a trade I might otherwise take. Again I want to thank Seanote for this thread!!
NUTSNEAL, OK but isn't the pin the price to the strike game usually played in the days right before expiration?