‘OpEx’ Shakes Up Third Week Of July


Simpler Trading Team

Jul 14th 2022  .  2 min read

The countdown to options expiration is closing fast this month.

Options expiration, or OpEx, takes place the third week of every month and can have an effect on the movement of stocks. 

The early arrival of OpEx sets up volatility

For July, OpEx arrived rather quickly considering the first week started on a Friday, July 1. It is important to understand that the OpEx countdown starts the first week that a new calendar month starts. The start does not need to be a full week, it could start on a Friday and be considered week one. (Like this month.)

As we head into Friday and the last trading session of OPEX week this month, let’s take a look at views on the current state of the market from Chandler Horton, Director of Day Trading Strategies at Simpler Trading. Chandler highlighted his insights into OpEx in his mid-week update of the Focused Trades newsletter.

Adding in the Consumer Price Index (CPI), giant technology company stock splits, and retail sales results into an OPEX week, traders can expect elevated volatility.

Preparing for OpEx ups and downs

Chandler shares how he dives into his trading preparation during this volatile week.

“In an OpEX week you can expect a lot of chops, pops, drops, and a lot of premium crushing,” Chandler said.

Retail sales numbers on Friday will be the final piece of economical data for this wild week. 

One thing that Chandler takes into account in his trading and his framework for analysis is structure. The structure of the market is important to consider when creating a quality thesis for the end of this week.

You can find all of the market structures and scenarios that Chandler finds valid in his Focused Trades newsletter video here.

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