So, I have watched a short video (https://www.youtube.com/watch?v=lXRAhoNd-50) of
Lawrence McMillan talking about trading options on or near expiration. He discuss that arbitrageurs says that they buy their stock on market close and exercise their Calls for cash (about 1:00 of the video).
Now, I want to use
MRVL as an example and analysis here.
TDAmeritrade shows that
MRVL has a 05/24/2019 $23.50 Call option with really huge Open Interest that is x10 factor of all the other options for months to come, screenshot for reference below:
Now, I have noticed that in the past few weeks (did not go too far in the past) the volume right after closing (4:00PM EST) was significally bigger than the average minute volume. The short table below sums few days as an example:
Data Volume / Avg Vol / Vol Bar Color 05-21-2019 701.50k / 94.02k / G 05-20-2019 762.18k / 123.76k / G 05-17-2019 494.44k / 77.73k / G 05-16-2019 465.97k / 78.79k / R 05-15-2019 438.87k / 67.65k / G 05-14-2019 639.15k / 95.51k / G 05-13-2019 784.84k / 99.39k / G
So the question is, what is the meaning of this repeated 4PM volume? Does it have any connections to Options trading?