This is the idea that says that the price of the underlying asset will gravitate towards the point where the most options expire worthless.
Some option traders will “trade around” or “trade off of” these levels by Selling Puts or Calls against it.
This is the idea that says that the price of the underlying asset will gravitate towards the point where the most options expire worthless.
Some option traders will “trade around” or “trade off of” these levels by Selling Puts or Calls against it.