Thursday, October 19, 2006

one last exp note

chatter on my desk was that lots of dealers are short 1375 1385 calls in the SP. This creates a lot of pin risk as the dealers hedge these calls, selling if the market gets above the 1375 and buying if it dips below.

Something to watch out for and remember that triple withching has a lot of flows that has nothing to do with fundamentals. Although neither has the last 20% run in the SP.


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