Quick Note: Options Expiration = Volatility Ahead

The markets may get volatile over the next few days as we have VIX Expiration tomorrow (4/19) and monthly options expiration on Friday (4/21). On these option expiration dates the market tends to get volatile and a bit unpredictable as option sellers (big banks) try to pin the closing price of the underlying asset in their favor.

The chart below shows the last few VIX expiration days. Notice that these days tend to produce wide range days that are often negative.

Similarly price action gets volatile during options expiration day (in light blue in the chart below), which is the 3rd Friday of the month.

Where could the SPY fall on options expiration day? Looking at the Max Pain chart below, there is a Call Wall (resistance) at $415 and a Put Wall (support) at $410. The Max Pain point (where the house makes the most money and option buyers lose the most money) is at $412.