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 paided 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.

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 ays 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 rebalance his hedges. This rebalancing is an effort to hedge the open contracts, thus maintaining a state where the least amount of money will be paid out. Rebalancing 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 ... Lewis has been doing it every month for a year and he hasn't missed yet. Below: His chart of 52 weeks of Apple Max Pain. For his analysis of??...

What Foxconn's blast did to Apple's Max Pain price - Fortune
May 23, 2011 ... A case study in how the options market reacts to breaking news We've written a lot lately about how traders buying and selling options seem to??...

My theory: Why Apple got smashed from 700 to 440 - AppleInsider Forums
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??...

TraderAbe (AbeTrader) on StockTwits
AbeTrader ?? $AAPL looks like put Apple max pain before daily rehedging = $525. Reply; Share; Like. Nov. 16 at 7:49 AM ?? AbeTrader ?? $AAPL Katy bar the door.

AAPLTrader Social Network
AAPLTrader helps you make more money trading AAPL Stock up, down and sideways. Successfully cash flow the stock you already own. Trade the market??...

aaplpain.com
A site dedicated to open interest Max Pain theory and AAPL options sentiment. What is ... If You Don't Like Apple, You Would Have Hated Walt Disney. April 1??...

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?

max pain,AAPL - Maximum-Pain.com
The cash value graph shows the result of the cash value max pain calculation. ... Apple Computers Options Trading Strategy (AAPL) - YouTube. Nov 13, 2011??...

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??...

Apple And The Difference Between Pinning And Open Interest Max ...
Jan 2, 2012 ... Pinning and open interest Max Pain are very different. Pinning is causal. Open interest Max Pain or any type of Max Pain is artificial price??...