RE:RE:Reminder that Options for CXR Stop Trading TomorrowYes it can go up or down.
I consider myself an expert in this field.
At 3:40, everyday, the TSX releases stocks with buys or sell inbalances.
For some reason, during options expiration day, it is more.
I have seen once, 1 day before option exp. being violently more.
The way it happens is if you have a stock that say to buy 10,000 shares on the report, it
is like, at 4:00PM, someone presses market to buy 10,000 shares.
I have followed this for about 10 years and check everyday for my stock to see where they place.
Problem is, the moment it is released at 3:40:00, there is already a big swoosh one way or another. For example, at 3:40, when it is released and we have a stock like, lets say, CSU which doesn't trade that much, if you have a buy of 20,000 on the screen, then the moment it is released, the computers pick that up and push the stock up 2% in 30 seconds. Computers are WAITING for this info to be released.
This is the same on the way down also.
Another thing, this is only 60-70% accurate.
When there is big volume to buy, 30% of the time, I have seen the stock go to the downside at 4PM. I don't know why and can't explain it.
I will give an example of what I have seen.
Let's say CXR is $45.00 and at 3:40, it says to buy 300,000 shares.
Once computers see that they start buying and it goes to $45.75 by 3:59.
Then when 4PM comes instead of buying 300,000 shares, they sell 300,000 shares
and swoosh it down because it went up too much.
Another thing, the last 3 years or so, you really don't get big swooshes like we saw the other day.
There are market makers controlling it and often when you have 500,000 shares to buy or sell,
you only see a change of 10 or 20 cents on the price. Not a big deal anymore.