Friday, March 15, 2013

Cash Max Pain Op-Ex

This is as of this morning's information approx. 9 a.m.:

SPY $160
IWM $90
QQQ $70
DIA $145

A second Calculator that claims to be p to date to within 30 seconds comes up with:
Max Pain/Max Pain Weeklies

SPY $153/$155
IWM $90/$93
QQQ $68/$68.50
DIA $140

As you can see there's quite a bit of variation.

These are all calculated on the basis of Max Pain:
"In Options Trading, the Max Pain theory, sometimes also called Option Pain or Strike Price Pegging focuses on the idea that towards expiration date the price of a stock will move towards its strike price thus inflicting most losses (pain) to the majority of option traders as all parties with high investments try to steer the stock price towards their calls or puts to minimize their losses."


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