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Tomorrow, Wednesday, to begin preparations for the expiration of the month of August the selective Spanish, and the week has not begun precisely in a positive way. The failure of that attack to the moving average of mid-term on Thursday, August 13, along with the fear growing of a second wave of the pandemic coronavirus has brought us back to the the psychological level of 7,000 points.
And as always before an expiration of options, although in the case of the selective Spanish to be maturing on a monthly basis and not quarterly, maturities that do not fall in a calendar quarter are not as important as the march, June, September or December.
However, you have to take into account the positions of investors in different exercise prices because, in case you see a significant number of options at any price level, we must not ignore it.
In fact, in the face of the expiration of this Friday passes just that. What happens is that these high levels of positions options are very far from the current prices as we will see below in the image attached below in this article.
This fact by itself is actually positive in the extent that we are not going to put it to the test since we are very far today from them. But if we see in detail what there is above these levels, we will realize that the amounts of options present superior prices are too small to withstand the onslaught of sales orders if we lose the support of the lows of last Friday at the 7.064, and also the 7.050 points.
With only 521 sale options and with the ridiculous amount of 117 shopping options in the 7,000 points we’d have a problem if we actually get closures below 7.000 points.
In fact, as can be seen in the attached chart, the amounts are reduced even more regularly to laugh, joke with the helpless support generated by 14.616 sale options in the 6.400 points and then many other in the 6,200 points.
Positions of options on the Ibex 35 of the face expiration this Friday
A amount of tremendously high-that points to the institutional investors normally open positions by selling the options to enter the premiums of them positioning themselves in the price levels where they think they could approach the fall of the market before a new onslaught of sales that was ahead 7,000 points.
Therefore, and with all the considerations for being really a maturity less, there is that have a lot of respect for the support of the 7,000 points and to assess seriously the coverage of their positions before the loss of that level.