3 Things You Must Know To Trade Options Expiration Week

Is options exiration week driving you crazy? It doesn’t need to… This week I’ve gotten calls from stock and futures traders telling me stories about how the market has given them a beating this week. It takes a little practice, but once you understand the differences in the market dynamics, it’s actually kind of fun to trade!

Here’s what I’ve discovered about options exirations week:

1. The volume and volatility is hit or miss. Sometimes the morning session will be slow, then pick up in the afternoon. This is different, where usually we’ll see nice volume and volatility in the morning, then slow down in the afternoon.

2. The market will sometimes “thin out” for short periods of time, which can spike the market in one direction (basically clear a bunch of stops), then head back in the original direction. This actually happened to us on our first trade of the day today.

3. There can be great movement when the emotion and opinions flood the market. This afternoon, we had some incredible opportunity. We were 3 for 3 in the PM session with a minimum of a 4-5 point potential.

Check out this video…

(EXPAND FOR FULL SCREEN VIEW)