WWW day ( Weird Wally Wednesday) refer to the Wednesday before OE week. This is the day normally sell off to kill calls before OE week. The wednesday usually have its job to wash off calls prepare for OE next week.WWW week behavior normally have Monday and Friday high and wednesday low.
Weird wally week is the week before options expiration week. Wednesday is actually weird wally wednesday. This is optionspositioning. This is done to run the call options down and then up on options expirations week. Often you will see a runup early in WeirdWally Week and then selloff the rest of the week. Options expiration is the 3rd friday of the week. Go back and check and you will seethis happens over and over. The markets job is take or make the most amount of money in the shortest time. Thats also why on Optionsexpiration friday you will see tremendous volatility up and down. Options at that point are extremely cheap and turn into 100-400%gains. By oex friday all the time premium has been taken out of the puts and calls and they are real cheap. You also see at least onebig up on OEX to run the calls up. Big money often becomes active then.
No comments:
Post a Comment