July OPEX Day study

07/16/2021 09:00 AM By Matt Ratliff
Today is Options Expiration day. Let's take a look at what has happened historically on this day.

Key Event: The monthly expiration date for listed stock options in the United States is normally the third Friday of the contract month or the month that the contract expires. Once an options or futures contract passes its expiration date, the contract is invalid. Therefore, traders must decide what to do with their options by this last trading day.

Day - Friday

Opening Gap Direction - N/A

Market Status - Continuing to chase new highs

Instrument - ES, NQ, RTY, YM

Trading SetUp - Long

Market Trend - Bull

Trade Type - Intraday Entry

Entry - 9:30 am ET (Market Open)

Exit - 4:15 pm ET (Market Close)



Note:  Most tests/studies here are done going long using Future Indices.  This is done for several reasons; so you can easily compare different studies/tests, and because of the high correlation of these Indices to other instruments. The Daily IQ is typically an End of Day analysis without stops/targets.  You can use Discover to test/study other potential trades with numerous stop/target values.  You can make comments below.


Click the "Sign Up" button below to receive the DailyiQ messages in your email inbox immediately as they are released.

Sign Up for the DailyiQ
Click below to share with your friends or colleagues