Options Expiration effect (OPT)

The options expiration day and the preceding days are important dates for each market as option sellers and buyers strive to push the price in their favor when options expire, which often causes specific price moves.

As options do not expire on the same day each month, regular seasonal charts cannot measure this effect, as they do not consider the different days in which occur a holiday (for example Thanksgiving) which occur at different day each year.

ForecastCycles OPT strategies

In ForecastCycles there are two OPT strategies:

• OPT_WE strategy
  in the Week of Expiration of Options:
  • it opens the position at Monday opening price
  • and closes it at Friday closing price.
• OPT_WAE:
  in the Week After Expiration of Options:
  • it opens the position at Monday opening price
  • and closes it at the Friday closing price.

Each stratetegy has two Tactics:

• US_Stocks
  • based on US Stocks options, that expire the 3rd Friday of each month.
• US_Stock_indices
  • based on US Stock Indices options, that expire the 3rd Friday of each quarter (Mar, Jun, Sep, Dec).