Be Careful During High Volatility: Option Investment Strategy from Expiration-Day Charts

Summary

Park Se-ik reviews the KOSPI and KOSPI 200 option expiration day, highlighting extreme intraday swings in near-expiry options and his long-standing rule not to hold option positions into expiration. He also reviews the weekly KOSPI chart and major Korean stocks, noting a potential rotation into shipbuilding after Samsung Electronics' earnings and highlighting relative strength in POSCO Holdings and licensing-driven momentum in ABL Bio.

• KOSPI 200 options showed extreme volatility into expiration, with deep out-of-the-money contracts moving many multiples and then reversing.
• Park Se-ik says he avoids holding option positions at expiration because of stress and reversal risk.
• KOSPI ended near flat with a weekly buy signal, but a further decline could trigger a third sell signal.
• Samsung Electronics reversed after earnings, with institutions and foreigners selling and retail buying.
• Park Se-ik sees shipbuilding as the next sector with strong earnings momentum and notes firm charts in Hanwha Ocean, HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and HD Hyundai Heavy Industries.
• POSCO Holdings is relatively resilient among battery-linked names because steel is its main business.
• ABL Bio is rising on actual licensing deals and related earnings momentum.
• Other chart reviews included biotech, shipbuilding, and large-cap names without separate trade calls.