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Post by slugworth008 on Jan 19, 2018 21:24:32 GMT -5
Over the years I've traded a fair number of options but haven't really paid much attention to the dynamics of share price action right before expiration. With large caps I doubt the options tail wags the dog, but with MNKD I am coming to believe the share price may be driven by the options.Is there a way of predicting whether the price will close right above or below a particular strike... e.g. if there are more open calls is it likely to end just below the strike and if more open puts it will end just above? Just had a bunch of $0.5 pre-split options expire 2 pennies short of in the money. Watch how AAPL trades on Fridays. They have weekly and monthly options. It’s uncanny, especially with monthly options, how the stock will gravitate towards a strike price. But I imagine that it’s much easier to steer the stock price of a small cap. Steering the price of a small cap is probably much easier than with an AAPL as much less cash flow is needed. JMHO and Disclosure I don't know too much about options.
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