Post-Expiration Trading?

Hi all,

Do any of you trade options on the Monday immediately following Expiration Friday? Do you avoid trading options on this day? I am trading big charts only (Daily & 233), and I would love to hear your opinions, either way. I usually avoid trading on this day, but am wondering if I should be open to trading on these days. Thanks!

Happy trading!


Best,
annu621

GW has said he usually doesn't trade the first few days (2-3) after expiration due to the market makers still trying to figure out the pricing of the next month to months options.

I trade on Monday's and Tuesday's after expiration. I trade stock specific...in today out today. Yesterday I traded NFLX.

I have found that sometimes if a stock is flying because of news or earnings after expiration Friday the market maker can only fool around a little with the option. Yesterday the market maker had me chasing the option even when I would place my buy 5 cents higher than the ask. I watched the option fly up and once it seemed settled I looked at my charts placed my ask 5 cents higher than the ask and was in the trade.

I have noticed that there are some stocks where the market maker fools with the option on expiration Friday after 1PM.

Also market makers are more likely to fool with NASDAQ options. A market maker can see bids and sometimes when one comes in higher than he is asking he will grab those before coming back down to where he was goning to set his option. That can happen on any given day.

Remember the market maker isn't going by small orders. He isn't going to mess with your order if it is 3 or 5 contracts. You get his attention when it is 1,000 or more. However some brokers may be placing orders as you are and you get slamed in the middle.

After expiration Friday S/O and I wait for the market to settle in for the day and then we trade according to the charts.