Expiration Related

I don't know if its expiration related but we are seeing extreme call activity this morning at both the ISE and CBOE. This is definitely not  a positive, especially if it continues all day.

3 comments:

Pacioli said...

Why is elevated call activity not a positive?

Not saying I disagree per se, but would like to get some clarification.

Tsachy Mishal said...

Heavy call activity tend to happen at tops while heavy put activity tends to happen at bottoms. I guess the explanation would be that if everybody is buying calls than everybody is already bullish. No more new buyers.

Shubh Desai said...

We are only about 10% below all time high in S&P. I am still holding stocks that I bought at 2009, 2010 and 2011 close to bottom (all dividend stocks). But I would be very careful adding new position until either good correction or we pass all time high by 5%.