I am heartbroken over the senseless tragedy in Paris tonight. Today we are brothers and sisters in one united family, and these attacks have touched us all. I have no words to describe how I feel at this moment. To the courageous and won…
The option screener has been showing high volume in the GE options this week. The monthly November 2015 options (11/20/2015) have over 1 million call contracts and 1 million put contracts. That appears to be a straddle. The option buyer …
Today maximum pain is re-launching two pages. They are the max pain history page and high open interest page. It's part of larger project to store historical option data
I was recently asked by a visitor to this website to demonstrate how to calculate max pain for a specific ticker and expiration. The ticker was the SPY ETF and last Friday 12/12/14 was the option expiration.
Open Interest walls or OI walls are similar concept to max pain. Both rely on the option writer, which is the market maker, hedging the options he wrote.
I've traded AAPL successfully throughout 2014 using the principals of max pain. Or more accurately, the Poormans algorithm.
It is a few weeks after the AAPL split and how do the AAPL options look? Well, the open interest is quite varied. In short, it probably needs a few more weeks to settle.
Apple stock will split 7 shares for 1 over the weekend of June 7, 2014. Apple is the poster child for max pain theory.