Why is Ford not particularly following ANY index this week?
This is options Expiration week. What will the MMs want, given they are usually net SELLERS of BOTH puts and calls?
The MMs will want as many of the options contracts they sold as possible to expire "out of the money" (OTM) or "at the money" (ATM). Why? So the MMs do NOT have to pay up.
Fearing they might have to pay up if some contracts exercise in the money, the MMs might try to buy a bunch of those back before expiration. But, their cash limits their ability to do that for too many. So pushing price to a MAGIC STRIKE that helps more contracts expire OTM or ATM will be preferred, all else being equal.
What magic strike might that be? AHEM. According to gruck's model, similar to a spreadsheet I use sometimes, it's currently $15 for May expiration. It will take high volume (big players arrive who are not MMs) and/or a rearrangement of puts and calls to change that.
JB, Shaggy's mom
PS For upcoming buy signals in daily charts, the PSARs for price to cross are:
OBVIOUS **F, $15.52 (forty-two cents away),
UNDER THE RADAR **Ford warrants, $6.48 (fourteen cents away), and **Ford bond trust (F-PA here, FpA at my broker, 26.47 (twelve cents away)
If price starts pushing past those on a day when F has volume, some of my conditional orders to buy Ford will trigger. Today is a high volume day for Ford. YAY!!