Tuesday, April 21, 2015

Historical Max Pain

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 price.

Currently, only AAPL stock has this historical max pain data. Why? The data for this website is gathered on demand from Yahoo finance. This means no one requests the max pain value for a particular stock one day, then there would be no value to record. Second, there are storage space concerns when attepting to store such data for every stock ticker.

I choose AAPL stock because it is the poster child for max pain. AAPL trades more options than any other stock. More option contracts means more common stock bought as a hedge by the option writer. A larger hedge has more effect on the stock price when it is rebalanced.

That said, how is AAPL doing? Here is the chart for mid March to mid April. The unbroken gray line is the stock price. The broken blue line indicates the max pain for that week.

On Friday 3/21/2014, Firday 3/28/2014 and Friday 4/18/2014 max pain was correct. On Friday 4/4/2014 and Friday 4/11/2014 it was incorrect. The week of 4/4/2014 was the week where the Russian and Ukraine conflict arose, driving down stocks Thursday and Friday.



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Sunday, May 24, 2015 9:00 PM
Maximum_Pain_cm
$NFLX Max Pain = 610.00. Maturity = 05/29/2015. Previous close = 621.87.
http://t.co/yBmz7RCPwN
Sunday, May 24, 2015 8:15 PM
Maximum_Pain_cm
$BIG high open interest range is 45.00 to 47.50 for option expiration 06/19/2015.
http://t.co/XVw3zWv7QE
Sunday, May 24, 2015 8:00 PM
Maximum_Pain_cm
$VIPS Max Pain = 27.50. Maturity = 05/22/2015. Previous close = 25.43.
http://t.co/0k5AGbyzb1
Sunday, May 24, 2015 7:45 PM
Maximum_Pain_cm
$INO high open interest range is 8.00 to 9.00 for option expiration 06/19/2015.
http://t.co/5jtAvFw44B