September Expiration: Bearish for the Next Week (Preview)

By Lawrence G. McMillan

One system that we normally trade is the one that says the market declines the week after September expiration.  This definition of “expiration” goes back to the days before weekly options, so it refers to the third Friday of the month (today, September 15th).  Last year, this system did not work, but it has produced profits in 22 of the last 27 years.  The track record is shown below.  Note that a negative number is “win” (i.e., the market went down) while a positive number is a “loss.”

Despite the failure of last year, we are going to...

This excerpt was taken from the 9/15/17 edition of The Option Strategist Newsletter. Read the full article by subscribing today.

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Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
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