Today is options expiration day, here is a quick study on options expiration day in November.
Key Event: Options Expiration
More Details: The monthly expiration date for listed stock options in the United States is normally the third Friday of the contract month or the month that the contract expires. On months that the Friday falls on a holiday, the expiration date is on Thursday immediately before the third Friday. Once an options or futures contract passes its expiration date, the contract is invalid. Therefore, traders must decide what to do with their options by this last trading day.
Day - Friday
Opening Gap Direction - N/A
Market Status - Options Expiration Day
Instrument - ES, RTY, NQ, YM
Trading SetUp - Long
Market Trend - Bull
Trade Type - Intraday Entry
Entry - 9:30 am ET (Market Open)
Exit - 4:15 pm ET (Market Close)
Note: Most tests/studies are done going long using Future Indices. This is done for several reasons; so you can easily compare different studies/tests, and because of the high correlation of these Indices to other instruments. Make your comments and ask your questions below.
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