Max Pain


The cash value graph shows the result of the cash value max pain calculation. The yellow highlighted column indicates the max pain option strike. The max pain cash value calculation uses the Open Interest to determine the cash paid out by the option writers if the stock were to close at each strike. For details on how the cash value max pain point is derived, please visit the calculation page.

The bars indicate how much money would be paid out if the stock were to close at the strike price. The red bar is the money paid out on puts. The green bar is the money paid out on calls. Looking at the left side of chart you'll see a large red bar. Should the stock price decline to that strike, many puts would be in the money. The red bar indicates the dollar amount paid out on those in the money puts. If there is a little green there, then is a small amount of in the money calls paid out. Similarly the green bar on the right side indicates that if the stock price were to increase a large dollar amount of in the money calls would be paid out. The max pain strike is the strike at which the least amount of options are paid out. It is the combination of the puts and calls. The point on the chart were the red and green bars are the minimum dollar amount is max pain.

Please note the open interest is updated daily prior to the market open. It is not updated intra-day. This page uses Yahoo Finance and similar sources for option data. The open interest data for the stock options is compiled nightly. Open Interest data is therefore valid prior to the market open, before the CBOE begins trading options each day. After the market opens and options begin trading the open interest data may no longer by valid. No option data source provides intra-day open interest. The only intra-day data available is the volume data.

The underlying option data, including open interest and cash values, can found on the Option Data page.

The numbers across the bottom represent the various strike prices of the stock options. Max Pain is calculated for each strike by determining the cash value paid out on each call and put option at that strike. The red vertical bar is the put option cash value. The green vertical bar is the call option cash value. The further away the stock price is from the max pain point the more the option writers will have to pay out. Conversely, the closer to the max pain point the stock price is the less they pay out.

Max pain theory says that the option writers will hedge the contracts they have written. In the case of the market maker, the hedging is done to remain neutral in the stock. Consider the market makers position if he must write an option contract without wanting a position in the stock. As the maturity date approaches, the stock price changes. In addition, contracts may be closed by the option buyers. As a result the option writer must re-balance his hedges. This re-balancing is an effort to hedge the open contracts, thus maintaining a state where the least amount of money will be paid out. Re-balancing of positions in the stock provide pressure on the price to close at the max pain point.

The maximum pain of Apple weekly options: One year later - Fortune
Jun 25, 2011 ... Below: His chart of 52 weeks of Apple Max Pain. For his analysis of what happened last week, see here. E-mail; Tweet; Facebook; Google Plus??...

My theory: Why Apple got smashed from 700 to 440 - AppleInsider
http://www.maximum-pain.com/apple-max-pain.aspx. You can use the drop down menu to change the maturity date. The amount of money the??...

What is Max Pain? It is a theory ... What is open interest (OI) Max Pain and how does it differ? ... If You Don't Like Apple, You Would Have Hated Walt Disney.

Maximum-Pain.com: max pain Home
Apple stock will split 7 shares for 1 over the weekend of June 7, 2014. Apple is the poster child for max pain theory. What does the stock split for max pain?

AAPL Max Pain - Maximum-Pain.com
AAPL Max Pain. Weekly Max Pain Calculator and Information. The cash value max pain calculation is the correct method for finding the stock price at market??...

AAPL - Maximum-Pain.com
Up to date analysis of Apple Inc. (AAPL) and its stock by hedge fund managers and industry experts. Find out what Apple Inc. is saying about its business from?

iMaxPain: Pro Options Max Pain Calculator and Tracker with ... - Apple
Dec 20, 2014 ... The ONLY dedicated app for calculating options max pain. Have you ever noticed that a stock sometimes closes pining at certain strike price on??...

Apple closes at or near 'Max Pain' 8 weeks out of 10 - Fortune
May 18, 2011 ... The theory known as Max Pain says that unless news or other events interfere, the stock will close Friday at or very near the chart's midpoint??...

Travis Lewis (Aapl_pain) on StockTwits
Independent trader. Study options and the affect it has on Apple. Run Aaplpain. com; an OI/Max Pain and Option Sentiment source.

Digging Deeper: Options Expert Discusses Pinning, Max Pain and ...
May 17, 2011 ... Return to Part I In part two of my series on options pinning and maximum pain theory, with a focus on Apple (NASDAQ:AAPL), I interview??...

Daily Newsletter
Enter your email address to get the free option screener



Google Plus


Recent Tweets
Thursday, May 26, 2016 6:27 AM
$GPS $AAPL $BAX options have the highest volume. Free options screener.
Thursday, May 26, 2016 6:19 AM
$TWTR sum put oi=18,317 sum call oi=35,210 CallPutRatio=0.52 expiration 05/27/2016 bullish. https://t.co/qEAnWr3dPK
Thursday, May 26, 2016 6:10 AM
$GOOG high open interest range is 700.00 to 725.00 for option expiration 05/27/2016. bearish https://t.co/loAjnFMICQ
Thursday, May 26, 2016 6:01 AM
$WDC $TIF $ESRX options have the largest change in open interest. Free options screener.
Wednesday, May 25, 2016 11:52 PM
$FB maturity 05/27/2016 oi CallPutRatio of 0.72 puts 59,230 & calls 82,451 bullish. https://t.co/RJdxki1Lfh
Wednesday, May 25, 2016 11:43 PM
$NFLX OI for maturity 05/27/2016. 93.00 Highest put. 100.00 Highest call. https://t.co/BZrlB798HN