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Expiration Pin Jamming

Posted on June 20, 2008

So here we are, Expiration Day.Will we see lots of pins? Who's got hand?Sure sounds like volatility abounds. I mean you have regional banks imploding, oil exploding.Yet options premiums drift. It's not a no-brainer, but I'd put pin likelihood on the higher end.What causes a likely pin?Well, high open interest relative to average daily volume is a start. Low volatility helps to as it makes it more likely anyone long a particular strike will have to go in there and aggressively hedge with stock orders around the strike. And having market makers long the options helps a pin along too as they are ...

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expiration , options , volatility