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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Why the specific prediction pp?[/quote]

Option chains are showing this prediction broadly. I expect it's market Pre-empting the 2nd fiscal cliff showdown. [/quote]

What is an option chain?[/quote]

Short answer: options expire at different points in time. So you can buy "Jan" options or "Feb" options. The price for those options usually reflects the markets belief in the stock, and usually the value associated with the time. An option that lets you buy a stock for $10 that's good for 30 days generally commands a lower price than the same option which lets you buy at $10 for say, 6 months. If you take a few thousand such options and plot their price, it's interesting to note that the late February options don't seem to be running along the trend line. The implication is the market is expecting a drop at that time. It's not really foolproof though, I'm not going to be actively trading on it and I wouldn't advise you to. [/quote]

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