PeakTrader.com Forum Index PeakTrader.com
Economics, Portfolio Optimization, and Technical Analysis
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 
Log inFast Charts

Option Expiration Week Short-Squeeze

 
Post new topic   Reply to topic     PeakTrader.com Forum Index -> Portfolio Optimization
View previous topic :: View next topic  
Author Message
administrator
Site Admin


Joined: 28 Dec 2005
Posts: 10346

PostPosted: Sun Aug 20, 2006 7:57 pm    Post subject: Option Expiration Week Short-Squeeze Reply with quote

The OEX 15-minute chart below shows a four-day short-squeeze, over Aug '06 options expiration week, from Tue morning into the close Fri. Until late Fri, OEX Aug 600 calls traded at 0.05, and those calls closed at 1.50, when OEX closed at 601.50. Consequently, it turned out to be an excellent opportunity to make huge gains. Also, I may add, OEX Aug 600 puts above 600 could have been bought very cheaply to hedge calls, in case the market sold into the close. Of course, the danger is OEX closing at 600, which would make the calls and puts worthless.

Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic     PeakTrader.com Forum Index -> Portfolio Optimization All times are GMT - 8 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by PeakTrader 2.0.8 © 2001, 2002