How does a stock a price perform on options expiration day? and Steps Stock

How does a stock a price perform on options expiration day?

I heard that the price of a stock trades close to the most popular option strike price around 3-4 pm on the day of expiration, How exactly does a stock perform on options expiration?


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Answer by JoeyV
Back in the '80's all the buzz was about volatility that happened near options expiration days. "Triple witching days" when options expired in futures, indexes, and stocks was a really scary day to be trading in the market (it's the third Friday of March, June, September, December which everyone knew in 1985 and nobody knows now).

"the price of a stock trades close to the most popular option strike price around 3-4 pm on the day of expiration" is kind of a weird statement. It's saying that close to options expiration, the most popular option strike tends to be the ATM options. You could read it wrong and say that the options market is a forward indicator of where the stock is going to be, but that would be silly.

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