RE: [CANSLIM] The effect of expiring options


From: "David Taggart" <dctag@mavericktrading.com>
Subject: RE: [CANSLIM] The effect of expiring options
Date: Thu, 22 Aug 2002 06:33:32 -0600

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The only time I see Option Expiration manipulation is on expiration Fridays
and sometimes the day before.  But I have never noticed it in small and mid
cap stocks.  If you look at the big cap movers like KLAC,NVLS,ERTS, and the
like then you will see how they almost always close that day whithin $.25 of
a strike price.

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley
Sent: Wednesday, August 21, 2002 7:26 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] The effect of expiring options


Kelly, I am not aware of options contract trading having any meaningful
effect on the price of the underlying stock. If you have any specific
examples, I would be interested in learning more. Usually it will be the
other way around.

The only specific situation I can think of is right at expiration, you might
get some large holders of options contracts trying to nudge the stock price
slightly higher or lower in order to have it close on Friday expiration
above or below the strike price.

- ----- Original Message -----
From: "Kelly Short" <kelly.short@tx.us.neoris.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, August 21, 2002 2:50 PM
Subject: [CANSLIM] The effect of expiring options


Someone has mentioned previously that stocks will sometimes experience a
short term move upward because of option holders selling off their
soon-to-expire option contracts. Can someone please provide more information
on this topic or point me to a good source of information to understand this
phenomenon more clearly?

Kelly

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