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How Option Makers Are Trying To "Close The Door" On Afternoon Last Day Option Trading"

This is something new that is affecting retail option traders which I have never really paid attention to before. I guess I am always learning. Option makers are taking steps to steer option traders away from chasing the option market from 1:00 p.m. to 3:00 p.m. on the "last-day-Friday-afternoon-options". It's only noticable on certain stocks like Exxon. I just came apon this after writing a blog about trading friday morning one day Call options on Exxon. Look at the "bid-and-ask" on this series of Calls on Exxon at 1:11.p.m. Look at how wide the spread is. Sixty one cents! That's crazy wide and if your stuck in a postion that you want to get out of at a fair price well good luck. Placing in a sell ticket by spliting the difference between the bid and ask would probably cause the bid to drop. This would force you to lower your asking price once again. In other words the liquidity is not there. This is in spite of it's mornings option trading being bris...
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Exxon. A Dropping Knife or Catching A Dropping Knife

Sometimes you see charts like this and instantaneously one's brain says "I don't like it"
. I get it.
Let's check back later in eighteen minutes to see how many new contracts are added to the count. The stock has dropped another 48 cents. It's trying to predict the bottom of the fall which becomes the million dollar question.
503 new contracts are added.
Now this. Perhaps it was a computer generated program that that purchased a block of 500 Calls. Is that a good thing or a bad thing? Well it might help us in deciding when to jump onboard. Now this at 10:51 a.m.
Tuesday in the new world of playing one week options are a good day to pull off stunts like this. ** Here is how Exxon closed the day.
The falling drop syndrome sometimes works on Exxon but not so much with other stocks.

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