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STOCKS; OPTION EXPIRATION WEEK.
I read an article some time ago that stated option
expiration week tends to have an upward bias.
Tradehard made the following statement on June 17th:
> Tomorrow is the quarterly expiration of options on stocks, stock indexes
> and stock index futures. Stocks over the past five years have generally
> moved higher in the week of the triple-witching options expiration.
>
> http://www.tradehard.com/index2.cfm
the results for the last 5 years for All months and
the last 12 years through this month are below.
Last 5 years.
Up 35 weeks or 56%
Down 13 weeks or 21%
Unch. 14 weeks or 23% ( Unchanged is a net change of
less that .05%
>From 1988 to date.
Up 75 weeks or 54%
Down 35 weeks or 26%
Unch. 28 weeks or 20%
The best 3 months: Jan, Apr and Dec.
The worst 3 months: June, July and Aug.
Triple witching only:
Last 5 1/2 years
Up 15 weeks or 68%
Down 2 weeks or 9%
Unch. 5 weeks or 23%
>From 1988 to date:
Up 25 weeks or 54%
Down 10 weeks or 22%
Unch. 11 weeks or 24%
A week to watch in the future. There is an old saying:
If you p--- into an east wind you will get wet. Why
did I do the study. I got wet. Fair warning. Mark your
calendar.
Norman E.
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