LOW is once again at its downtrend line. My bias is on the short side and target is 52. I would bail out at 54.5 if the volume is higher than the average.
LOW
Category Archives: Options
LOW
LOW is once again at its downtrend line. My bias is on the short side and target is 52. I would bail out at 54.5 if the volume is higher than the average.
MSFT
MSFT has filled more than half of its big gap. It should test the support at 26 soon.
MSFT
MSFT has filled more than half of its big gap. It should test the support at 26 soon.
Option Pinning …
Option strike price sometimes has interesting effect on the market during option expiration week. Looking at MSFT chart, we can see it slides towards 25. Based on the option trading volume data at Yahoo, there were 10,791 contracts (Apr04 25 Call) changing hands with 79,265 still outstanding, the heavest traded strike today. For premium sellers, it’s to their advantages to let the contract expire worthless, which means in this case that MSFT has to go below or at 25 to let Apr04 25 call contracts expire worthless. I have a small long position where I had sold some at 0.95-1.05 earlier and hold some until today I sold them at 0.7.