Why do some small caps tank on option expiration day?

Discussion in 'Trading' started by iggy9807, Apr 19, 2010.

  1. iggy9807

    iggy9807

    Is that because naked-put shorts are dumping the stock they had to buy?
    If that was the case then naked-call longs would be causing some stocks to soar and I don't see that.

    Or is it price manipulation of some sorts?

    A few examples from last Friday: CEP, CVO, GBE, FCEL

    Is this a tradable phenomenon? :confused:
     
  2. "That" probably had more to do with the Goldman Sachs "news" than anything else. All of the financials were pulled into that vortex. :cool:
     
  3. spindr0

    spindr0

    Any chance it had something to do with Friday being a down day???

    :D
     
  4. Was Friday a down day because it was a down day or because of GS? :confused: :D
     
  5. spindr0

    spindr0

    It was a down day on the "Lude" bb

    :p
     
  6. ?....??.....WTH?......the age difference between us is atleast 12 years. :(
     
  7. spindr0

    spindr0

    Hey, it's not my fault that you stunted your developement :D

    (ducking)
     
  8. Bond traders don't "mature". :cool: