EXPIRATIONS provide support and resistance to price movement. Why? Because where a stock expires is the balance point between the buyers and the sellers for the expiration cycle. It is where the most "opinions" about market direction have been expressed and therefore it creates a natural, "market memory" level where the market level is familiar to the most market players-investors-traders.
Keep in mind that Tradingview charts adjust historical prices to reflect dividend payments, therefore my lines get changed every time a dividend gets paid. Over the long run this is helpful so you can see total (untaxed) return on a chart of any stock, ETF, and compare them. However, it does alter the actual prices that the stock traded on that day.
Lastly, the CIRCLES are the closing price with an average range around it to help the expiration price "stand out" to your eye. The horizontal RED LINE is the close, but it might need adjustment based on dividends that have or that will be paid.
Cheers.
Questions or comments? Please ask or tell.
Tim 11:05AM EST November 20, 2012
Keep in mind that Tradingview charts adjust historical prices to reflect dividend payments, therefore my lines get changed every time a dividend gets paid. Over the long run this is helpful so you can see total (untaxed) return on a chart of any stock, ETF, and compare them. However, it does alter the actual prices that the stock traded on that day.
Lastly, the CIRCLES are the closing price with an average range around it to help the expiration price "stand out" to your eye. The horizontal RED LINE is the close, but it might need adjustment based on dividends that have or that will be paid.
Cheers.
Questions or comments? Please ask or tell.
Tim 11:05AM EST November 20, 2012
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