I have been often asked what is "option pinning" or "pinning the stock". In the video above I go over two examples of two stocks that "pinned" the option strike with the most open interest on options expiration.

On a quiet choppy trading day, school stocks added a late day spark with unconfirmed reports being kicked around about the federal education official would soon step down. In the Elite Chat Room we saw the names start to run wondering what the news was, but soon after the move higher

Friday was a big day in the market going into April options expiration. Not only does market volatility increase with unexpected market gaps higher or lower, but strange intraday swings occur throwing off those trying to day trade.

With many thinking that this was just going to be an ordinary expiration cycle were hit early after the market open with news hitting the news wires about Goldman Sachs (GS) being charged with fraud by the SEC.

Research in Motion (RIMM) issued Q4 2010 Earnings after the market close on March 31, 2010. Even though (RIMM) raised Q1 guidance above analyst's estimates, option activity going into earnings was giving a bearish to neutral bias.

iStar Financial (SFI) had a quiet day today, but yesterday we had a nice intraday trade in our Elite chat room with prices breaking to new highs. Ahead of the move, we picked up large call buying in the April and July 5 call option strike.

In our Elite chat room, where we go over real time option activity and trade ideas, I posted a trade in Fed Ex (FDX). With earnings before the open Thursday morning, implied volatility going into this event was elevated giving advanced option traders different opportunities to make money using advanced option strategies.

PetMed Express (PETS) saw an explosive move higher yesterday, closing near the highs which saw follow through today with prices hitting new all time highs this morning. On Friday we saw a pick up of call action going into the weekend in the March call contracts with buyers in the 22.5 strike.

Paccar (PCAR) had a huge day on Friday with hitting new 52 week highs. Friday's move was tipped off with a large buyer in the March 39 calls early Thursday morning when prices reversed on a large equity block hitting the tape.