Yesterday I posted the Options Expiration analysis the post ended like this,
"As always, it's a best guess and my best guess would be somewhere around >$120-$122+, a bit wider then past guesses, but there is a quarter of a million in open interest at $122."
The SPY close today? $121.98 which means after you figure in the premium and even if there was no premium, the transaction costs alone made the quarter of a million open contracts at $122 worth ZERO.
So one again, we see the market do what it does best, take your money.
This is why I am not a big fan of options and if you trade them, you need to take a much different approach, lest you be part of the majority of option buyers who saw their contracts expire worthless.
Guessing the market pin and missing it by $.02, shows just how prevalent this practice is and why the markets were so flat and calm today.
5 years ago
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