 | This article is rated Start-class on Wikipedia's content assessment scale. It is of interest to the following WikiProjects: | ||||||||||
| |||||||||||
Clearer distinction edit
I think this article would beneit from a clearer distinction between:
- The phenomenon that stock prices sometimes get pinned to strikes shortly before option expirations, presumably due to option hedging activity
- The fact that exercise may be notified after the cash market is closed, causing difficulties for option writers if the stock price is near to the strike
EdwardLockhart 09:00, 29 April 2007 (UTC)
- Agreed. I think the tendency to move towards strike levels isn't necessarily a separate idea, but rather an effect of the actions of long gamma hedgers. By all means please add what you think would be helpful. Ronnotel 13:53, 29 April 2007 (UTC)