SPY pinning

[noob_trad3r]

94,882 131
155,739 132

Between the 131 and the 132 strike there are two big chunks of call outstanding interest

with a bunch of interest on the 131 put.

does that mean that on expiration the SPY will probably be at 132 maybe 131.80-132.10?

 

[galvinlee888]

Quote from noob_trad3r:

94,882 131
155,739 132

Between the 131 and the 132 strike there are two big chunks of call outstanding interest

with a bunch of interest on the 131 put.

does that mean that on expiration the SPY will probably be at 132 maybe 131.80-132.10?

no, much more complicated than this simple theory

 

[volente_00]

It's not about pinning.


It's about selling premium on the swings to extremes of the ranges.




129 -132 range for Feb



outlier 128 - 133



Would not be surprised to see a 131-133 range til oe


The large open put interest from 125 up offers support short term but it can be wrong 10-20% of the time.

 

[tomk96]

large open interest can have an affect since that is where the long gamma people have the most gamma and theta. they are trying to scalp their gamma and can sometimes keep the range tight around a strike in a quiet market.

 

[galvinlee888]

Quote from tomk96:

large open interest can have an affect since that is where the long gamma people have the most gamma and theta. they are trying to scalp their gamma and can sometimes keep the range tight around a strike in a quiet market.

good observation and good luck.
If the world is so simple, all the us here are billionaire

 

[tomk96]

Quote from galvinlee888:

good observation and good luck.
If the world is so simple, all the us here are billionaire

you must not trade options

 

[galvinlee888]

Quote from tomk96:

you must not trade options

I know what you want, i won't bite ..

Nothing to tell