SPY Options Expirations Graphed

Options expiration is this Friday, the third Friday of the month. This chart graphically displays the expiration price with a line at each expiration going back to Feb of 2011 and a circle around the closing price. The interesting perspective that options expirations provide is that it represents the price at which the most people have hedged and protected their positions at for the entire month. Potentially, the expiration represents the sum psychological support or resistance level. I think the chart speaks for itself and I can devise many of my own theories as to why these are important levels, but let's just see if the chart tells a story to you all by itself. Look at how the 122 level has 4 expirations and it held on that last test.... and now we are running into 4 expirations just overhead from 132-134. Perhaps we just grind sideways for the next month or two. Please mark this chart "like" if you like it. Cheers. Technical Tim Friday, Jan 20, 2012 12:20AM EST