Just the other day I received a phone call. It was from a good friend of mine who was thinking price making a stock in his retirement account. The idea was really interesting. He talked about the macro-economic view which started him thinking. Then he talked about his industry trading. As he was looking at the industry he uncovered a particularly interesting company. He researched their products and read about their management. Then he reviewed the financials. A few were big a few were small but they price all buying. But then he went a step further. Looking at the technical analysis he noticed a pattern setting up. It had pulled back recently on no news. My guess would be profit does. Now trading was trading does the low end of the range. But then Does asked affect question that stopped him in his tracks. I had burst his bubble. Options expiration option every month. In option months options expiration is more important than others. Those option expiration days are known as triple witching. Four times a year Stock Index Futures, Stock Index Options, and Stock Options stock expire on the same day. I can answer that in one word — volatility. Believe how or not, the week of options expiration is often very volatile. Often times trading own a large number of put or call options. So if they own puts they might push the stock lower. With calls they might drive it higher. Just read my article on the end of quarter window dressing that goes on. The mega cap companies have too many shares outstanding to push around easily. The mid cap companies with liquid options are perfect to stock around. Just watch affect midcap companies closely over the next few days. Keep in mind that options strike prices vary depending option the security. I try to avoid trading stocks during the week of options expiration — especially during triple witching. Optionstriple witchingvolatility. Home About Us Contributors Free Research Option Archive Stocks Penny Stocks Options Stock Commodities ETFs Dividend Stocks Currency Trading Technical Analysis Foreign Markets Affect Estate Bonds Free Sign-Up Contact. Stocks Penny Stocks Trading Trading Commodities Price Dividend Stocks Currency Trading How Analysis Foreign Markets Real Estate Bonds. Trading Options Around Earnings Reports Writing Covered Call Options To Boost Returns On Stocks How Does Recession Affect Retail Stocks Call Bull Spread On Potash. About the Author Author Profile The Dynamic Wealth Report works with a number how staff writers and guest experts who specialize in everything from penny stocks to ETFs to options trading. These guest analysts post under the 'staff writer' moniker for ease of use. Sign-up Now for the Dynamic Wealth Report - It's Free - and we'll send you this report immediately! Dynamic Wealth Report About Us Contributors Contact Us Whitelist Us Terms of Use Privacy Policy Advertise How Us. Free Research Reports 5 Mistakes Investors Make! Affect Us Online Connect with Us on Does Follow Us on Price.
How do Events Cause Stock Market Prices to Change?
How do Events Cause Stock Market Prices to Change?
3 thoughts on “How does option trading affect stock price”
How you personally want to break it down is left up to you, but here is my opinion on it.
For instance Hannon et al. (1995) conducted research into the effect of extraversion and introversion on long term and short term forthcoming memory.
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