Video explanation of option max pain theory
Here are 4 stocks to buy that are currently less than $10. Each of these stocks has the potential to climb in price of the coming months. This is for February 2017
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.