Strategies and Models for Winning the Endgame see Another Winner from Jeff Augen for more details , which inspired me to consider a number of potential new options expiration strategies.

It is not just the fact that I have always found it difficult to be consistently profitable on options expiration days that has bothered me, but it has also been the frustration of seemingly having to maintain one set of rules for trading days per year and another set of rules to deal with a completely different set of opportunities and hurdles presented once each month.

Further, why bother with the day before FOMC announcements, when trading is typically lackadaisical at best? With options expirations every month and FOMC meetings every six weeks, this means 20 additional vacation days a year — perhaps even paid for by cutting trading losses. I encourage every trader to check their track record on options expirations days and FOMC announcements days to see whether they should be entitled to 20 extra vacation days.

It is from Battle Rock Beach at Port Orford, Oregon. I took this particular shot on a bluff overlooking the beach. Battle Rock Beach webcam ]. Posted by Bill Luby at 9: New Technical Strategies for Investing in Unstable Markets. The latter topic has been very well illustrated by Dean Mouscher on his masteroptions. I am in agreement with you on Augen's first book, which I gave a Best New Volatility Book Award to last year.

Also, based on what I have seen from Dean Mouscher, I suspect I will be recommending his work on a regular basis as well. What Jeff hasn't pointed out in either of his books is WHY there are wild gyrations on the last 2 days or week of expiration cycle and also the impact of program trading on option expiration cycle.

Why wild gyrations - often times market makers square their positions before expiration cycle that leads to buying and selling of position to net their positions. This results higher volatility, inflating the price of options, and that's where option traders come in to squeeze out the weak hands.

But how about program trading in options? These algorithms are especially designed to take advantage of market makers squaring their positions. Jeff has written thousands and thousands lines of programing code for trading both earnings and expiration cycle.

Trading Options at Expiration: Strategies and Models for Winning the Endgame - Jeff Augen - Google Livres

Having said the forgoing, even after 12 years of option trading, I cannot say with certainly or pin-point the exact reasons. This is something to ponder on, if one aspires to be an options trader.

Thanks for the book tip guys, I am just getting into naked puts and strangles and love the IV crush! Bill, Nice post, and I am going to read Augen's and Mouscher. Two thoughts before I do: Between dealers who have to be more aggressive with their own books and other players who can trade much more quickly then we can, I do everything I can to get our positions out of front month and into another cycle at least a week before expiration week.

There is just too much event and gamma risk to ride out expiration with white knuckles. Reduce your stress, roll into more time and look for strategies measured in something other than minutes until Friday's close. Plus, I believe there to be some nice arbitrage opportunities on the new short-term months like SEP next week for JAN and FEB cycle stocks with rolls from AUG for another 28 net days.

I already have my list of open AUG short call contracts that can be moved to SEP next week. Nice article on gamma and closing positions before the math gets dangerous can be found here: Hi, Let me send you some charts.

Dax - Medium term http: Nothing new medium term. Friday, July 17, Trading Options Expiration Days. July 17, at Cheers, -Bill July 17, at Jimmy July 17, at 2: July 17, at 4: Newer Post Older Post Home.

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