In preparing to day trade broad-based market securities and indexes during the week of the third Friday of any month, which is often referred to as options expiration week, awareness and knowledge of potentially occurring and repeating broad market futures price patterns and symmetries, which can occur in successive days, may be very helpful to your trading results.
Knowledge of these interesting price patterns and symmetries can aid the lay investor and trader, as well as the seasoned portfolio manager, as they attempt to build the value of a derivative account for
Using these notions of periodicity, price-time association, echo-vector price symmetries, and statistical observation, it can be further discovered and recognized that active advanced position management opportunities, occurring at key times, on key days, within key broad market futures daily price symmetries, and within key price-time echo-vector coordinations, may also occur. My focus in this article is on presenting their potential occurrence, and a strategy to take financial advantage of this occurrence, during options' expiration week within these key reflection month sets. Familiarization with these specific daily price sensitive and time sensitive echo-vector reflections and price symmetries may aid your forecasting and investing technique; and, with knowledge of additional active advanced trade positioning strategies, can further frame up your considered approach to the market during these potentially opportune trading weeks.
What follows is an example of this opportunity as it unfolded in real-time in May 2012: This example presents an important analytic framework and trading strategy that may be useful in helping to prepare the advanced active trader or advanced active portfolio manager for the approach of the May 2013 major options expiration week three months out from last week's major February options expiration week:
There are three quarterly echo-month time period sets within each year, each with four quarterly
(Interestingly, this set follows the often volatile and highly-studied and most-referenced 'earning season months' set in each year; being, January, April, July, and October (the JAJO month set).
Basic 'time premium assuming' buy-to-open and sell-to-close entries and exits into this PUT option rider vehicle during this key three day relatively price-symmetric focus trading opportunity period, in this key week, of this key month, within this key set of months, are highlighted are highlighted in the charts. So are the powerful gain differentials.
Again, this article is for scholastic and informational purposes only.
Before making any investment decisions we highly recommend you first consult with your personal financial adviser regarding your personal investment situation and goals.