What is the significance on options expiration?

Discussion in 'Trading' started by Darshan, Aug 15, 2008.

  1. Darshan


    Stocks tend to gravitate towards leaves where there is the most open options interest? Is this true? Is this because the market makers can do the most volume at these levels?
  2. I am also seeing much of the rolling over in the few days before the Friday expiration. Many recent option expiry days have been pretty quiet.
  3. The most volatile day of the week of a Friday expiration tends to be Wednesday, while the actual expiration day sees big chunks of volume going off, with little price movement.
  4. There is a price trend towards maxpain on opex. It is only a trend and not a law of nature.

    It may be a self fulfilling prophecy or something else.