J Monte, Chief Market Strategist for The Market Guys, has written a paper for the Market Technicians Association on the topic of ‘Pin Pressure’.
This document was grounded in research conducted by the University of Illinois showing how Option Trading Volume affected the price of the underlying stock in which the option contracts were traded.
From this paper, AJ has developed the Pin Pressure Indicator TM which is a calculation that computes the combined open interest traded at various strike prices and uses this data to determine price targets for individual stocks as we approach options expiration Friday. Read the actual publication here….Click Here