The annual expiration is approaching, and this Friday the 26th, more than half of the total holdings' options will expire. Currently, repositioning and trading are the main forces driving transactions.

This can generate a lot of noise signals for us. In recent days, it is not advisable to use options data as trading signals. For example, today the proportion of large block trades in puts reached 30%, but this is not a bearish signal. Many deep out-of-the-money and in-the-money put options were traded, and of course, this should not be seen as an institutional viewpoint on the level.

Because when a large number of options expire, many institutions move their positions in advance to hedge against major risks. At this time, it can be very cost-effective to take on some of the end-of-life positions that institutions are shedding. The prices are very favorable, and in the past two days, there have been many negative slippage trades. Using smart trading can achieve better quotes, and this is real experience gained through actual transactions. 😁