Tue, Jul 22, 2014, 4:53 PM EDT - U.S. Markets closed

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Baidu, Inc. Message Board

mbawizking 1 post  |  Last Activity: May 16, 2014 1:19 PM Member since: Jun 13, 2006
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  • Options are not derivatives any longer. Stocks are the derivative of options. This is a principle that can be applied ever since they rolled out weekly options and then $0.50 increments.

    Selling options is a guaranteed way for the house to roll in bank on a weekly basis. Banks control the options and in turn the stock. Banks rely on their dark pools and a constant selling of options to capture premium on option expiration day. Add in high frequency trading with their millions of bogus orders throughout the day and one can start to see where a stock will close within the first 10 mins of trading on option expiration day which is now every Friday. Would not surprise me to see them open up daily options or $0.25 increments in the future so they can control it even more.

    There is almost a 0% chance this stock will close above $37.40 today. It may go higher than that briefly before the close but the options market has spoken.

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