Tuesday, June 4, 2013

Stock Pinning

What is 'Stock Pinning'?

Action/activity at a certain strike price

To find pinning activity look at the open interest and daily volume of a particular strike.

If there is a significant change in daily volume for a particular strike call or put that would be considered as the pinning point for the stock.

It is better to open a position at the pinning point.

There is a potential pinning activity in few stocks such as AAPL GS AMZN BIDU