by Craig Hemke, Sprott Money:
Last week, we wrote about the pending option expirations on COMEX and how this event was likely to impact prices in the short term. We even projected where prices might finish on option expiration day, Tuesday, April 25. Let’s see how we did.
To start, you might go back and read or review the full post from last week. Here’s the link:
TRUTH LIVES on at https://sgtreport.tv/
It was Monday, April 17, when we discovered our first hint of where price was headed. For fun, and so that it was timestamped, I decided that this one should go on Twitter:
As an explanation, here’s an excerpt from last week’s post that is linked above:
As last week’s option open interest chart shows, there was very little likelihood that The Banks would allow a $2000+ closing price at expiration. If they could get it to $1990, all the better. However, look again at the massive disparity between total calls and puts between $2000 and $2060. The chart below was updated as of Monday, the 24th:
In the end, anywhere below $2000 would qualify for a Bank “sweet spot” price for option expiration on Tuesday, the 25th. And where did price close? A late session rally on renewed concerns of a banking crisis moved price just above $2000 to near $2004.
And then, as if on cue, price began to rally sharply in the after-hours Globex session:
As noted last week, though the May23 contract is a front and delivery month for COMEX silver, the total option open interest was far lower and, as such, much less important to The Banks. Here’s another snippet from last week’s post. Again, this was written more than a week BEFORE option expiration.
