Option Expiration Week (OPEX) marks the expiration of options contracts, introducing significant market volatility and influencing price movements. During OPEX, the interplay of delta, gamma, and hedging activities by market makers can lead to substantial shifts in liquidity and market direction.
Traders need to be aware of the technical price adjustments that occur as options move from out-of-the-money to in-the-money, potentially triggering the pinning effect at key strike prices.
