options and shortselling.

[noob_trad3r]

I noticed that on thursday or friday expiration I notice some stocks crash hard price was if its trading around one of the strikes and lots of open interest on the call.

Like GE I notice it was hovering around 14 and the call open interest was high and now a big plummet under 14.

Is there some kind of way things go. with calls. like big shortselling or unloading of stocks prior to expiration?

GE seems to do this usually I have noticed.

 

[rarhoads]

There's a good book just out about trading around expriation - Trading Options At Expiration (of all things) by Jeff Augen

 

[noob_trad3r]

Thanks, I will look into that.

 

[dagnyt]

Quote from noob_trad3r:

Is there some kind of way things go. with calls. like big shortselling or unloading of stocks prior to expiration?

GE seems to do this usually I have noticed.

GE is a poor example. With strikes every point, the stock is always trading near a strike price.

the answer is 'no' This does not always happen. If you are thinking of trying to profit from this, be very careful. You have not discovered anything.

Mark