To see how well your max-pain theory works, take a look at SWC. Max-pain there is $7.50, so it should have been driven down to there today (by your logic). But sure looks like it's closing at $9.6? (up 8%).
Are you guys for real??
Did you honestky think PAL would magically pop from $3.50 to $5.00 in a day due to options expiry? Get a clue, guys. I strongly suggest you all invest your $$ in mutual funds and stop wasting your time.
Anyone who was screaming for PAL to pop that much because of options expiry is either:
1. A complete idiot
2. A wolf in sheeps clothing
You decide who is who.
Another "clue" is the fact that PAL is one of the very select few that is trading down on a day when the PM's are exploding. Take a look at SWC. You folks bet on the wrong horse.
PAL is being manipulated and being naked shorted. It was added to the naked short list yesterday. Without the manipulation it surely could have shot from $3.50 to $5.00. It dropped that much during the plummet, why can't it rally that much due to the option expiration effect, and PGM rally?
We are talking about half a million shares worth of in the money put options that must be exercised today. So far no trade of these put options so nothing has been bought back and closed.
I have filed a complaint with SEC. We can not let the crooks get away from this.
I will short it
but not now with high oil............WHEN OIL CORRECTS about 20%, remember me........SHORT FSLR, and ESLR
Its a certainty.....even Eric Bolling knew this
Its like saying SHORT BIDU when china crashes
There are 5365 in the money put contracts to expire today. The holders of these put options MUST exercise today because they are expiring. That means 0.5365 million shares MUST be purchased from open market to be "put" to the option writers.
Trading volume is light so far. I don't know who holds these options, why they are not exercising so far. What are they waiting for. But something is very fishy here.
It seems like the new bottom is 3.7 or so. Volume is unusually light, as if folks are holding off waiting for lower sell limits to be set before taking them up. Options screen hasn't changed. Still to early to say anyone was wrong or right. If this is the only miner down then that would be a good indication that something is going to happen. All the technical indicators are still screaming buy.
By the way, tellurium. You say there are 5365 in-the-money Put options. Did you happen to notice that there are 5925 Call options that are out-of-the money & "worthless"??
You seem to look at one side only and ignore anything that doesn't fit with your ideas.
Have a good day! I'll be watching for all that volume and price increase (or the option trading vol.) Let me know if I happen to miss it.
You say the options "MUST" be exercised. NOT TRUE!
Also, "the stk. MUST be purchased on the open mkt. to cover these"...again, NOT TRUE!
If they are exercised, it will be a bookkeeping transaction between the option holders. No stk. HAS to be purchased.
You really should attempt to 'know' what you're talking about before posting statements like you're an expert.
And as for your 'max-pain'....did you happen to run the max-pain graph for PAL? At any price BELOW $5. the max-pain of loss is to the Call holders NOT the Puts!
I've been trading options profitably for years...I know about Options, and max-pain, and expirations, etc. How many option trades have you had in your investing 'career'?