Option Expiration Pinball

The key to being a successful trader is to be able to capitalize on a setup opposite to what your opinion of the market.

For example it’s one thing to be intellectually bearish and another to exploit a long setup.

As my dad, Jack, who was one of the best tape readers I’ve ever met, liked to say, “Stocks don’t move, they are moved.”

In other words, positioning is one of the drivers of price action near term… especially around Option Expirations when the option tail can wag the market dog.

On Thursday before the open, the Hit and Run Private Twitter Feed posted a bullish setup on AMD.

We went on to tweet that it could extend toward the 103 region.

The charts below on AMD walk thru the setup.

As you can see AMD has potential to push to the 105 strike today.

Interestingly, today squares out with 105/106 on my Square of 9 Wheel.

Currently we see a similar setup in USPT to push to the 30 strike.