Originally Posted by
Chern
There is no guaranteed answer (is there ever in the market?), but it does have some utility. Whatever their reason, there are clearly buyers at that area. It can be exploited for short term trading. Note that this morning despite the dump in gold and initial big dump in gdx it was bought immediately and shot up to 25.69. I have occasionally put in lotto orders to try to catch the morning juggling as the stops are hit, and it was very rewarding; the risk is very small as you are usually getting filled at 3-5 cents, and will get 5-10 times your money. I emphasize that you will get very few contracts, the algos do this extremely rapidly and you should place the trades the day before as GTC. I wish there was a way to automate and scan for these anomalies as it can be so much fun to make that money, and it is usually made very quickly. Also you need a low commission broker, as the commissions can actually double your option cost.