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[RT] Options as an Indicator



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I had heard recently that option positions are being closed out earlier
than the Friday of expiration so as to smooth out trading on that final
day. I also heard that the Wednesday before is usually the biggest
close-out day to unwind positions. I haven't studied this, but if
yesterday's action was due to unwinding option positions, could that not
be a signal for tomorrow's action? My guess is that Friday will track
Wednesday and the severety one way or the othere would depend on how
many positions still need to be closed out.  What I'm basically asking
is, has anyone studied the relationship between Wednesday and Friday
prices when Friday was the close-out day?

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Ralph           =>        E-mail   =>  rjv@xxxxxxxxxx



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