In Today’s Masters in Trading: Live September 19th is one of the four most important days on the calendar for every options trader… Today, we’re seeing that perfect storm where options, futures, and index derivatives all expire simultaneously. And on the heels of these expirations is one danger that all seasoned traders fear – pin risk. It’s that nerve-wracking moment when stock prices hover dangerously close to strike prices, leaving option holders in limbo. On expiration day, when a stock finishes right on a strike price, no one knows if the options will be exercised or not. Why? Options don’t officially expire until 10 AM Saturday, not Friday’s close. That creates games and uncertainty in the final minutes. And it can set off a whole lot of strange moves in the options market… You see, market makers will typically “pin” a stock to a strike price where the most options expire. And that usually sparks unusual, last-minute moves that don’t make sense on the chart – even for stock-only traders. So what’s an options trader to do when pin risk rears its head? For us, it’s simple… Don’t play chicken at the strike. Close your positions before expiration. Pin risk is the ultimate expiration day trap. Recognize it, respect it, and don’t get caught in the market makers’ playground. Avoiding the pitfalls of pin risk? It’s all in the way we manage risk here in Masters in Trading. And in today's episode of Masters in Trading at 11 AM EST, we’re diving headfirst into the perils of pin risk. I’ll show you: - The specific signals that tell you when to close positions
- How to spot when market makers are setting up a pin
- The strategies we use to profit from expiration day chaos instead of becoming victims of it
- And with over 100 likes on yesterday’s video, I’m bringing you another free trade today!
Recommended Link | | | | In 2000, Eric Fry told Barron’s magazine that investors should sell a very popular dot-com stock just before it plunged 90%. Today, Eric is saying the exact opposite about it — “BUY NOW!” This same company is now the lifeblood of AI data centers — yet it’s completely undervalued. He says anyone who owns Nvidia stock would be well-served to sell those shares and buy this under-the-radar play instead. Get Eric’s full take on the situation right here… |  | |
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