• 649 days Will The ECB Continue To Hike Rates?
  • 650 days Forbes: Aramco Remains Largest Company In The Middle East
  • 651 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,051 days Could Crypto Overtake Traditional Investment?
  • 1,056 days Americans Still Quitting Jobs At Record Pace
  • 1,058 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,061 days Is The Dollar Too Strong?
  • 1,061 days Big Tech Disappoints Investors on Earnings Calls
  • 1,062 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,064 days China Is Quietly Trying To Distance Itself From Russia
  • 1,064 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,068 days Crypto Investors Won Big In 2021
  • 1,068 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,069 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,071 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,072 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,075 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,076 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,076 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,078 days Are NFTs About To Take Over Gaming?
Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

Options Expiration

6/23/2014 5:51:21 AM

Good morning traders,

Big picture, if you've traded long enough you know that options expiration tends to play into market timing considerations. Here are a few things to consider:

On the markets, absent the affect of options expiration, you have options traders getting a bit greedy:

Equity Put/Call ratio Chart

And on one measure, the internals of the market are turning lower and hitting the all important zero level!

NASDAQ McClellan Oscillator Chart

Looking at a couple of our commodity services, here's what's happening in Gold:

Gold Put/Call Ratio Chart

As contrarian traders, meaning when the crowd leans to the left, we tend to lean to the right, this reading above is bearish. Sure there was the point last july when the call buying did lead a significant move higher - but it was also a top. I expect the same here. We'll look to add some gold puts at some point...

And oil?

Oil Volatility Spread Chart

This potential for oil to rally means we'll be further rewarded with our call options. This doesn't always result in an advance, but the potential is there...

Regards,

 

Back to homepage

Leave a comment

Leave a comment