Weekly Poll: Will Buyers Knocked Out By Expiration Put Up A Fight?

SPY Next Week?

  • Bullish

    Votes: 11 27.5%
  • Flat

    Votes: 6 15.0%
  • Bearish

    Votes: 19 47.5%
  • I prefer to keep my opinion to myself

    Votes: 4 10.0%

  • Total voters
    40
  • Poll closed .
"butterfly effect" :confused:

Butterfly effect
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For other uses, see Butterfly effect (disambiguation).
Point attractors in 2D phase space.

The butterfly effect is a metaphor that encapsulates the concept of sensitive dependence on initial conditions in chaos theory; namely that small differences in the initial condition of a dynamical system may produce large variations in the long term behavior of the system. Although this may appear to be an esoteric and unusual behavior, it is exhibited by very simple systems: for example, a ball placed at the crest of a hill might roll into any of several valleys depending on slight differences in initial position. The butterfly effect is a common trope in fiction when presenting scenarios involving time travel and with "what if" scenarios where one storyline diverges at the moment of a seemingly minor event resulting in two significantly different outcomes.


Butterfly (options)
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Payoff chart from buying a butterfly spread.
Profit from a long butterfly spread position. The spread is created by buying a call with a relatively low strike (x1), buying a call with a relatively high strike (x3), and shorting two calls with a strike in between (x2).

In finance, a butterfly is a limited risk, non-directional options strategy that is designed to have a large probability of earning a small limited profit when the future volatility of the underlying is expected to be different from the implied volatility.
 
I wish it could reach 111 for SPY and 46.25 for QQQQ for today. I could almost hear the sellers talking at those levels--Listen, and you might hear them, one of them is discussing shortie short sale what he scratched. :)

I might settle for selling slim calls.
 
Quote from shortie:

scratch SPY 110.29

Were expecting a 100-meter dash?

2:47PM: the buyers in the last two hours upmove on EUR/USD are now about to face the sellers. Let us see what the clash will lead to.

3:04PM: sellers pushed buyers from 1.2930 to 1.2915. Is this reflected in stocks?
 
as far as thread title, the answer is that the bulls did put up a fight. actually it was a total mess: up/down/up/down/up. i am quite sure that many traders with good strats made huge killing this week.

i am just happy to break even. :D :D :D
 
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