OPTION EXPIRATION USED TO BE FUN
Option expiration Friday's used to be fun. Actually, they still are fun once in a great while. However, the fever with which it used to whip traders into a frenzy is for the most part gone. A function I think of institutions having a better handle on it than individual investors, who have become a smaller population of the current financial market demographics.
It seems that the powers that be are perfectly content keeping prices around the unchanged level for today. Short of a panicked institution being on the wrong side an option max pain point, I wouldn't count on much out of this market for the rest of today.
I think next week, however, will be a different story as the volatility will pick up and the market will demonstrate that it is not yet done with its reckless, rebellion against all the bulls who seem to hardened believers.
Again, the long-term is very bullish, but we are in need of a recalibration of the bids and offers in order to see this market have fuel for another leg up. It could take some months. In that time, it will play with your head...make you think you are seeing things that don't exist and cause you to question what you believe in...be forewarned!
Our portfolio remains a demonstration of how micro-cap names can indeed function as a market neutral strategy...as we are more or less flat once again. We had about 6 up months in a row coming into 2011...and were due for a break. I am not at all disappointed with this behavior and think it serves to preserve the uptrends in our major holdings.
Sitting tight on this option expiration Friday.
