SPY Open Interest for Quad Witching

Last Week:

Last week was all chop, which hopefully you had already anticipated. We are still range bound and hopefully we will come to some resolution after Big Ben speaks on Wednesday. Be careful that day though, the first move could be a false move. Until we breach 1597 or take out 1650, keep things tight and maybe focus on individual stocks more so than indexes.

On Wednesday of last week I posted the OI and discussed the heavy put buying, mostly at the 162 level. That along with some technical indicators gave me a short bias, which worked at first. When we started moving higher and higher on Thursday, my bias changed. If my bias can go from short to long in less than 24 hours, then I know staying back is the best strategy.

Next Week:

Keep in mind that next week is quadruple witching, which can make for a volatile week. When so many options are expiring it can also lead to better guesses as to where individual stocks may pin earlier in the week than is typical. In order to give you a sense as to where pinning may be on some high momentum stocks, I will be posting OI graphs separately on StockTwits and twitter at @sassy_spy.

Below is your open interest for SPY. I wasn’t watching these options carefully until Thursday.  I saw no major changes take place Thursday or Friday so no major clues were left. I will be paying attention to any large buys moving into Wednesday and will update OI if I see any.

Good luck next week! Look out for my OI graphs on your favorite stocks!