Research / Flows and events

Options expiry

Prices near large option positions can be pinned into expiry and released after.

The idea

Prices near large option positions can be pinned into expiry and released afterward.

Why it might exist

Dealers hedging large positions buy and sell in ways that dampen price, then free it.

Who is on the other side

Dealers hedging a book, not expressing a view.

What would retire it

Heavily optioned names and a control group behave alike.