First look at the FTSE’s mighty Dec expiry ratios

Looks like the zone will be crucial as we kick-off the mighty Dec expiry.


Nb. Our comment from the 11/15/21 (Not published)

Nb. Our comment on 11/22/21


Welcome to the big one, the cumulation of everything done so far this year.

Although easily the biggest of the year, by a huge margin over the intermediaries but, even over the previous three triples, it is ahead by a very decent amount.

Therefore, by this very nature, it is more cumbersome and unwieldly which should be borne in mind. As should the fact that because it is so massive there is normally a significant uptick in the derivative related equity business, which more often than not gets misdiagnosed, but also means they get emboldened to take on higher ratio levels than they normally would.

However, just looking at the table above and the main issue is going to be the zone.

It is currently 6950-7050, which is actually lower than it was in the Nov expiry, but it could very easily move to 7050-7150 and there is even an outside chance of it getting to 7250-7350 further down the line during this expiry.

This means, to us at least, that where the zone is will play a crucial role for this trip so we will keep you posted as best we can.

Otherwise, the other critical levels to watch are R3 at 7350, as although R3 should not be particularly troublesome in the mighty Dec expiry it does have history and proved to be an important level in Nov. Then 7450 is a far more robust resistance level, and DR ratio amount of dynamic delta there is enough for even this expiry to sit up and take notice.

On the support side, well this will really be down to the bottom boundary of the zone. So, currently at 6950, but also keep a wary eye on 7050.

Otherwise, just enjoy the ride and surf along on the volume spike.


Range:            7150  to  7350       

Activity:          Poor

Type:              Neutral


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November 22nd, 2021 by