The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha. Welcome back to the daily call. Today, we’re going to answer the question, “How important is a stock’s closing price?” To me, a stock’s closing price every single day is vitally important to the potential expectation for the next day and I say this only on days that we see a huge move in the stock price because for me, the idea of people trading the stock during the open or afternoon sessions is important, but what's more important potentially is what people are willing to hold overnight because the risk that you hold overnight when you can't actually trade that security is very telling to me as to where the stock may or may not go in the future. For example, if we see a stock have a huge run-up early in the day, but everybody dumps the stock at the end of the day and nobody wants to hold it, well, what does that tell you? That tells you that maybe we might see some sort of reversal or move down the following couple of days. On the other hand, if we see