"Thursday's expiry of equity options contracts is exaggerating the market's reaction to negative offshore developments in thin trading due to U.S. Thanksgiving holidays. "I think a lot of the option put assignments are being sold back into the market," says an options trader at Macquarie. The implication is that the market could bounce, barring fresh selling. The trader expects the market to close above 4000 Friday after a break below. Anticipation of a bounce on Wall Street could also be a factor. "If recent history of public holidays in the U.S. is anything to go by, then the S&P/ASX 200 should almost exactly erase yesterday's losses by the close of business this afternoon," OptionsXpress market analyst Ben Le Brun says. "We have seen negative days replaced by positive ones and vise versa after U.S. markets being closed in recent memory. Early signs are pointing to a carbon copy of this today." "
