Pinning
TradingDefinition
Tendency of stock prices to converge to options strike prices at expiration, especially when large open interest sits at a strike. Caused by dealer delta-hedging at high gamma points.
Less prevalent post-2010 with weekly options + 0DTE. But still occasionally observable in monthly opex of large-cap stocks with concentrated open interest.
Less prevalent post-2010 with weekly options + 0DTE. But still occasionally observable in monthly opex of large-cap stocks with concentrated open interest.