Option Sweet Spot

This tool calculates where the most CALL and PUTS will expire worthless. This “Sweet Spot” is calculated by the Open Interest for each strike. The “Sweet Spot” is the spot where the most options (Calls and Puts) will expire worthless. You will notice that the Market Maker will drift the price of the stock to around the “Sweet Spot” on Expiration Friday aka the third Friday of the month. You will notice that some stocks will move closer to the “Sweet Spot”.

GOOGLE is one of the stocks that have been somewhat accurate. I pick on GOOGLE because there are a few articles out talking about GOOGLE price manipulation. I have found that the “Sweet Spot” has been accurate within pennies about a week and a half before expiration.

Have you ever seen a stock that moved hard in one direction for no apparent reason?
There is a good chance that the option sweet spot came into play.

What is the market makers job? Well his job is to make a market, but his objective is to have the most stock options expire worthless.

Many stocks have a history of closing at this sweet spot.
Once you determine which stocks have this pattern you can use that to your advantage and add it as a tool in your trading arsenal.