Talk:Pin risk

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Clearer distinction

I think this article would beneit from a clearer distinction between:

The phenomenon that stock prices sometimes get pinned to strikes shortly before option expirations, presumably due to option hedging activity
The fact that exercise may be notified after the cash market is closed, causing difficulties for option writers if the stock price is near to the strike

EdwardLockhart 09:00, 29 April 2007 (UTC)[reply]

Agreed. I think the tendency to move towards strike levels isn't necessarily a separate idea, but rather an effect of the actions of long gamma hedgers. By all means please add what you think would be helpful. Ronnotel 13:53, 29 April 2007 (UTC)[reply]