The homebuilders will rally in front of OPEX. The boyz get desperate with those piles of ITM puts expiring---looks like another opportunity to short the sector is coming very soon. This has happenned every month this year in front of OPEX.
http://stockcharts.com/c-sc/sc?s=$DJUSHB&p=D&b=5&g=0&i=p07506828902&a=86652684&r=557.png
Death, Taxes and ....
Started by
Cirrus
, May 17 2007 11:07 AM
2 replies to this topic
#2
OEXCHAOS
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Mark S. Young
Posted 17 May 2007 - 01:38 PM
Thanks for the heads up!
Mark
Mark S Young
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#3
Cirrus
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Posted 17 May 2007 - 02:25 PM
It looks like a great trading op from the long side, too. Especially if they're very oversold. Buying Monday's close in front of OPEX would have made a killing in the sector every month this year. The problem with these typed deals is given the OI in the puts for the sector you will inevitably get that one OPEX that sees the sector really tank. That's probably coming sometime soon. I think the reasonable use of stops would help with this deal. I've thought a lot about backtesting a ST strategy that looks for volatile stocks with heavy put OI in front of OPEX.
Edited by Cirrus, 17 May 2007 - 02:32 PM.
