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Stock Pins in the PM, Straddles in the AM

I reread a section of Jeff Augen’s book Trading Options at Expiration: Strategies and Models for Winning the Endgame (Amazon link) last night. He argues that the morning of expiration Friday, today, is good for buying straddles since they are cheap and stocks like Apple, Research in Motion, Mastercard, Goldman Sachs, and Google can move a lot. I waited for RIMM to get near 75 and bought a straddle to test it. I overpaid since RIMM still had high vol from last night’s earnings announcement. But it is moving.

Around 2 PM is a good time to look for pins in the above stocks, though AAPL and MA move around a lot.

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