Weekly AAPL Butterfly Ideas from Jeff Augen
- Thread starter comintel
- Start date
I don't think you'll get that from a "book". You will likely have to personally work with him for his current approaches.
Hi A--x
gabby here.
I think Augen is saying pros are on the opposite side of the public buy-write crowd which would make the pros new short call as they sell to the public who are currently covering their short calls. I don't buy that explanation to explain the downdraft since the pro have to buy stock when their offers on the calls get lifted by the public post earnings. Furthermore, Atticus brought up point that the open int alone can't justify moving goog around by that magnitude.
gabby here.
I think Augen is saying pros are on the opposite side of the public buy-write crowd which would make the pros new short call as they sell to the public who are currently covering their short calls. I don't buy that explanation to explain the downdraft since the pro have to buy stock when their offers on the calls get lifted by the public post earnings. Furthermore, Atticus brought up point that the open int alone can't justify moving goog around by that magnitude.
lower volume with higher OI and options trades out there would cause the closing options trades to have more influence...but from what i've read and as well what my intuition tells me any Market maker is gonna hedge with other options and only use the underlying when they have to.. or at least from my understanding thats what i would do.. that being said.. who really knows how much of the underlying is being traded in delta hedging closing call positions.. i do think theres alot of shit to deal with delta hedging ATM options at expiration..
i'd be more apt to believe that the trading in the underlying has enough randomness to it.. that it would throw off any good insights you would have as to strike pinning and market making activities.. that being said.. i have definitly felt at times that these trades have provided influence.. IE aapl pinning the 680 strike last week.. right where all the high open interest is..
to me trading buying straddles and strangles on expiration day when there is alot of Macro winds is a good play... otherwise the underlying pins strikes... i haven't been watching it for years.. but thats what i see.
the other thing i've always thought is the asymmetric triangles seem to point right to strikes!