SPX returns during expiration week

schmd2000

Expiration week is upon us, and as we have said on many occasions, such weeks favor the bulls. In fact, per the table below, the last 12 expiration months have clearly favored the bulls, with seven of the 12 positive for an average gain of 1.2%. Looking back, July 2009 expiration week produced a near 7% SPX gain.
But keep in mind that when declines do occur, they can be sharp and quite noticeable. Put another way, short covering related to expiring index put open interest can create a tailwind during expiration week. But delta-hedging declines, which occur when strikes with heavy put open interest are penetrated to the downside, can create sharp, volatile downside moves. Add in the beginning of earnings season and a second-quarter GDP growth report from China coming out later in the week, and you have the makings for a strong directional move this week.

sooners

回复 1# schmd2000


   

everest001

Thanks!

sexydaytrader

thanks

oda