The Options Expiration Week

The Options Expiration Week (OPEX) Of October

The coming week is the OPEX week of October.

We are entering a historically strong seasonal tendency in the stock market (from OCT to APR), and it might be interesting to find out how stocks have performed this particular week in October.

Trading Rules

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Let’s backtest by being invested from the open of Monday OPEX week and exit at the close of Friday:

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The average gain is 0.39 and the win rate is 63%.

Opposite, bonds have fared badly this week: minus 0.47% and only a 46% win rate. The same goes for gold: -0.55% average gains and a 40% win rate since 1980:

 

 

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