Start of the FTSE Nov expiry and already there are oddities.

Start of the FTSE Nov expiry and already there are oddities.


Nb. Our comment from the 10/16/20 (Not published)


Nb. Our comment on 10/19/20

We are going to start coverage of the November expiry with a mention about the recently expired October one, as the market tested and bounced off 5950 on the Tuesday, then on the Wed it camped out on it for at least two hours, before eventually closing at 5935.06.

So, for an awful lot of the rollover, it did remain in its zone, but the writing was on the wall when it failed to stay inside.

Then, when we checked on Friday, the zone had actually moved to 5900-6000, so the close on Fri, the expiry, was actually back inside, although the EDSP was 5878.68.

Looking forward to November, and already there has been some huge changes in the ratios, but all in those below the zone.

Which itself, has remained static, at 5950-6050, tantalisingly close.

But, with R1 dropping to 5750, this is not good news for the bulls.

But, if you are a trader, then a 400-point wide Y ratio bandwidth should have you licking your lips in anticipation.

Don’t forget though, this an intermediary expiry to intermediary, so stupidly thin, and it is also a 5-week expiry, in which, the first week can often be a bit ignored.

Furthermore, and looking ahead to the 20th Nov, as next up is the omnipotent Dec expiry, and this year, with what has gone on, it will be a monster.

However, there is one anomaly we have noticed, and despite our delta ratio being an unremarkable 82.1%, it is starkly apparent that there are hardly any calls open below, or in-the-money, the current market level, bizarre, and, if still the same after this first “spare” week, quite often bullish.


Range:            5750  to  5950        

Activity:          Strong

Type:              Neutral



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October 19th, 2020 by