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.

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.

IBM - United States
The IBM corporate home page, entry point to information about IBM products and services.

IBM Jobs at IBM - United States - Jobs at IBM
Jobs at IBM. IBM U.S. Job seekers information about worldwide jobs, careers??...

IBM - Wikipedia, the free encyclopedia
The International Business Machines Corporation (IBM) is an American multinational technology and consulting corporation, with headquarters in Armonk, New??...

IBM: Summary for International Business Machines- Yahoo! Finance
View the basic IBM stock chart on Yahoo! Finance. Change the date range, chart type and compare International Business Machines against other companies.

IBM - International Business Machines Corp Stock quote ...
International Business Machines Corp (NYSE:IBM). Real-Time ... Latest IBM News | Press Releases ... Will IBM (IBM) Stock Be Helped By China's Inspur Deal ?

IBM Stock Quote - International Business Machines Corp. Stock ...
Updated stock quote for ibm - including ibm stock price today, earnings and estimates, stock charts, news, futures and other investing data.

International Business Machines Corp - IBM - Stock Quotes
International Business Machines Corp, IBM real time stock quotes, news, videos at CNBC.com.

IBM | Facebook
IBM, Armonk, New York. 360532 likes ?? 6116 talking about this. Official IBM Facebook page. This page is managed by Katie Keating and George Faulkner,...

IBM (IBM) on Twitter
The latest from IBM (@IBM). Official IBM Twitter account. Managed by Katie Keating and George Faulkner. Follows the IBM Social Computing Guidelines.

IBM - Google
Get detailed financial information on INTERNATIONAL BUSINESS MACHINES CORPORATION COM STK USD0.20 (LON:IBM) including real-time stock quotes, ??...