Thoughts for the week ending 8/26/16. Let's start by taking a look at the SPY Open Interest and Volume for the week ending 8/26/2016
So you are a new to this website, and you are new to the concept of max pain. Where do you get started? In a nutshell, max pain theory says that the option sellers (called writers) have stock on hand to fulfill the options if they are exercised. These stock positions are maintained to minimize risk to the sellers, and this maintenance affects the stock price. So, options can be the tail wagging the dog.
One question that I'm often asked is what are my data sources. My primary source for option data is Google Finance. Yes, you that right, Google Finance. Google official retired their finance data some years ago. But the API is still available.
Options are one factor that affects a stock price. other factors are news about a company and overall market sentiment. For example, if a stock posts good earnings and a robust outlook for the next quarter, but the DOW is down 300 points because of oil falling, then it will be difficult for the stock to make gains.
I'm introducing new pages that shows the historical option data. You supply a stock ticker, maturity date and strike price and the page will return the option history. You can choose to view the
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
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
Today maximum pain is re-launching two pages. They are the max pain history page and high open interest page.Back on July 1st 2015 we began storing the daily option data for the stocks of the S&P 500.
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
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. The 6/27 expiration saw open
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?Apple is the poster child for max pain
Ever notice how AAPL almost always closes higher on Mondays? Take a look at the Friday and Monday closes from February to mid May of
A great number of people have asked about the historical max pain values. Recent;y this website has begun recording the daily AAPL max pain values and comparing them with the daily stock
The VIX option max pain data is now available. Several users have emailed us asking for the VIX option data. If you are one of them, you'll pleased that the data is finally here.Use the ticker
Friday is the January 10, 2014 weekly option expiration. Max pain as of Thurday morning is 545. AAPL Stock is due to close Thursday at about 536-537. That is a significant difference. Let's paper
On StockTwits.com this morning I posted the AAPL option max pain for the weekly Jan. 10 maturity. Jan. 7 at 7:11 AM maximum_pain_cm $AAPL Max Pain = 550.00. Maturity = 01/10/2014. Previous close =
I've traded AAPL successfully throughout 2014 using the principals of max pain. Or more accurately, the Poormans algorithm. That algorithm relies on the same basic idea, that when investors buy option
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.For max pain, you use the cash value at each
The February 2014 monthly options expired on Friday 02/21. The closing stock price on Friday was 525.25. The max pain value was 535. Did max pain miss? Yes. But in my opinion it still provided a
On Thanksgiving 2013 this website will begin tweeting the weekly max pain. You can follow us and get the weekly AAPL max pain daily. The purpose of the twitter account is to assist users like you get
This is a video explanation of max pain. It describes how max pain can be used to predict the stock price upon option expiration. In brief, max pain functions because of the hedge re-balancing by the
Aapl stock has been moved dramatic in the last quarter of 2012 and so far in 2013. The action in the stock has been so furious, that the weekly max pain numbers are easily over run. Max pain has not
I'm pleased to announce the release of the max pain history page. I received a number of requests for this data. The page displays the max pain cash value figures and the closing stock price for
I received a few requests for historical max pain values recently. AAPL max pain history is the one most often requested. Unfortunately I do not store the max pain values for AAPL of any other stock
One put selling strategy is to establish a long position by selling puts. The option seller (or option writer if you prefer) is obliged to purchase the stock at the strike price. If you want to
Option contracts are two sided contracts. There is an option buyer and there is an option seller (also called an option writer). The option writer collects the premium, but is then bound to fulfill
A put option is a derivative. It is the short equivalent of a call option. Shorting a stock is taking a position that the stock price will fall. For example, imagine stock XYZ trades at $20 per share.
I recently had an email from \"cswolfe\" asking me what stock tickers will return max pain data. The specific stock in question was ZNGA. This website gets all the option data from Yahoo Finance. Any
A fictional stock XYZ trades for $100.00 dollars. The stock options strike prices and opem interested for XYZ are listed below. strikeput open interestcall open interest 95 21 9 100 33 45 105 5
I got an email question from someone learning about options. They asked me \"wouldn't the max pain strike price within the expiration time frame be a variable value?\" Max pain may change from day to
Monthly option expiration this week is a good example of max pain. The Greek elections are 2 days away, and the \"Grexit\" is at stake. The volume on AAPL was low both Thursday and Friday. I
Seeking Alpha contributer Rocco Pendola does an excellent job of explaining max pain. He has posted several interviews with experts where he directly asks about the forces behind max pain. Rocco and
Another low volume Friday for AAPL. This bodes well for max pain. But this week is only weekly expiration, so there is much less open interest compared to monthly expiration. Less contracts, less
Visit the Yahoo Finance message board and you'll find that many posters claim max pain and \"pinning\" on option expiration dates is manipulation. In truth, the concept is not difficult to