Expiration

What is the Max Pain Concept of Options Expiration?

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Max pain concept of options expiration

In the options market, there are options sellers and options buyers. What is a win for the option seller is a loss for the option buyer, and vice versa. Contents The option sellers will reap the greatest reward if all the options they sell expire worthless. In that scenario, the buyers’ options would become worthless, … Read more

How Market Makers Influence Expiration Week

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Max Pain in options trading

Contents Options expiration can be frustrating for traders, especially when a stock seems to gravitate toward a specific price, erasing profits from otherwise well-placed trades. This phenomenon is often attributed to Max Pain theory, which suggests that the underlying stock price tends to close at the level where the largest number of options – both … Read more