Iím new to options but Iíve had some luck with GOOG. This site has
really helped me understand how GOOG performs:
This Little Peggy Hit $600, This Little Peggy Hit $530, This Little
Peggy Likes Stock Price Manipulation
Published May 18, 2012 | By uranium-pinto-beans
Today AAPL closed a shade over $530. GOOG a shade over $600. Another
option expiration Friday, another peg for AAPL and GOOG. These
popular stocks have strong option trading interest as well and this,
in my view, leaves the stock at the whim of option writers. I have
covered this topic before.
Options in popular stocks each month at options expiration close
almost perfectly at a strike price. This is not the case the rest of
the month. Anyone who thinks this market is free and unmanipulated
needs to look no further than the action that occurs on option
Even the government uses option expiration to their advantage. I went
over this in a video the other night.
September 18th 2008 on option expiration the SEC announced it was
banning the short sale on all financial stocks. Everything ripped
higher. If you wanted the most bang for your short sell banning buck
you would be announcing this move on opex. Touche! I was holding $.
20 CAT calls I sold 20 minutes into the session for $10 and $7.50.
There were option millionares who bought bank calls at $.05 and were
selling at over $5.00. It was a wild day and just what the government
How about two months later in November? They leaked that Turbo Tax
Timmie was to be named the next Treasury Secratary. The DJIA ramped
over 400 points in the last 2 hours of the session. Huge money makers
in the option market on that move.
So while the financial channels will tell you opex day is usually
volatile, I would like to add that it is historically one of the most
manipulated trading days you will see each month.