I believe I posted this last month, when I predicted that by May OE, that the stock would close at $580. This came from the max pain site. It's been well known and printed in the New York Times that this kind of activity goes on.
Does Option Pain Theory Really Work?
It has been observed over and over again that, near option expiration, option buyers suffer significant losses. According to a New York Times article, it is likely that option sellers, including firm proprietary traders, "manipulate stock prices by selling large numbers of shares whose prices they wanted to keep from rising and by buying other shares whose prices they wanted to support."
Based on the information available I am thinking that this was an anamoly that triggered smaller follow-up sells from small investors who didn't want to get caught with their pants down after the sell-off we have had in the markets today. UNLESS... someone else has more valid information -- like a downgrade coming or bad comscore data or whatever else.
It's fairly easy if you have enough shares to execute a buy-sell at 10 points below market value after hours. This can have a short term effect on retail such that it can cap the price for a few days. About $45 million in call options are at stake, which might be the reason for the cap. Look at the max pain graph for this month.
This unnatural cap on no news may be a buy opportunity prior to the run up for earnings next 3 weeks.
Wow, are you saying that MMs are driving down the price to this ridiculous level so as to let the 40m options expire worthless??? I thought these kinds of games were played with smaller cap stocks and I had thought large cap stocks like GOOG were immune from this BS!!!