Tuesday, June 12, 2007

When is the best time to play OE?

Many people may be confused that how to play with OE week?
Even though I seldom trade in OE, but according to my observation, the best time to play with OE is thursday, one day before Friday. And more surprising, you need to reverse trade the direction of what happen on Wednesday and Thursday , let 's check whether it is still true this OE.

But let's try to find out the logistics behind this. What move the OE? market maker?
Where does the market volatility come from? You bet. It comes from the battle between option writer and option buyers. Most likely the institution and hedge fund who use either the leverage to protect their position or just wanna maximize their profit. What would be most important day during such a process? Friday you may say?
Actually Thursday would be the best time , to be more specific, the last few hours during normal trading hours will be the best time to control everything. Institution won't be defeated by small investors, they normally defeat themselves. That is why they would allow volatility to flow while getting control in the last 100 m run during a 1 km race.

Just stay cool and build up our own thinking.

17 comments:

Unknown said...

Thanks, Metronic, I do not quite understand this article though. I'll read again tomorrow.

Unknown said...

Just found out that your time setting here is PST. Hmm...

Carol said...

Qianhu, nice observation! I will keep an eye on OE play every month :-) You surely make the boring week more interesting :-) Thanks!

Unknown said...

Hi qinquan and all, probably you guys already found this news but just want to share it with you guys. AOB is buying another company:
http://www.reuters.com/article/mergersNews/idUSWNAS380820070613

Carol said...

http://www.reuters.com/article/mergersNews/idUSWNAS380820070613
Thanks Fakhrul, the complete link as above.

Carol said...

Wooops, looks like can't paste everything. So have to go to the page and type "AOB" in the search bar.

Metronic said...

hehe, chanel,
I don't know how to change the time set:)

Metronic said...

thx fakhrul,
hehe, awesome, exactly as what we think. He will use the proceeds to buy out. Awesome, that is the AOB we like :)

Metronic said...

I will check the changchun xian pharm corp to find out what it is.

happydayone said...

ai, very confused with NAZ. I changed my sentiment from Bearish to Neutral. NVEC is almost like dead meat without any move. Cry for NVEC mm's first dance.
I bought WFR as plan today (Purely TA). My next target is AKAM. Anybody likes to give a little comments on these two? Thanks in advance.

Metronic said...

AKAM is a good buy here!
you are great happydayone.

brisk said...

got in WFR yesterday. cannot compare to FSLR that I almost bought:-(. This sector looks getting back now.
Missed AKAM :-((( really need a robot to manage my watchlist.

happydayone said...

I have n't got akam yet. Wait for tommorrow to see how market act.

Carol said...

Brisk, could you help me check the historical ER performance for WFR if not too much trouble? Thanks so much!
How did you find out AKAM, happydayone, could u share? Thanks!

Metronic said...

I think AKAM is a buy here again:)

brisk said...

Carol, the historical data is in
http://www.fortuneseeds.com/er.php
I need to refresh data this weekend and fix some bugs. meantime, if you guys have any suggestions, please let me know so that I can include them into next version.

Metronic said...

Does anyone get into AKAM?