When I wrote yesterday’s Daily Call I did not expect the range for expiration of the May contract to be the range of day before expiration (options expiration). Noticing the trade early in the day, I was startled with the severity of the declines and the potential for expiration below that of April’s expiration. A cup of coffee later, the market rebounded a dime and continued the rally to the high side of my aforementioned expiration range. Currently, there is little insight as to how and where expiration occurs. The May contract has traded only a dime discount to the June contract which represents a significant reduction in the spread. As a trader, I will take a step back to watch for the expiration today, referring back to a series of comments over the last couple of weeks regarding the importance of this expiration.
Major Support: $1.611, $1.555-$1.519
Minor Support: $1.78-$1.765
Major Resistance: $1.993-$2.025, $2.062,$2.08-$2.102
Minor Resistance: $1.968