I've heard about this concept called max pain price in the stock market. Could someone explain to me what it is and how it affects options trading?
5 answers
KimonoGlitter
Wed Dec 25 2024
Max pain represents a specific strike price in options trading.
TaekwondoMasterStrengthHonorGlory
Tue Dec 24 2024
It is characterized by having the highest number of open options contracts, both puts and calls.
CryptoMagician
Tue Dec 24 2024
This strike price has a unique significance as it is the level where the most option holders would suffer financial losses upon expiration.
Isabella
Tue Dec 24 2024
The concept of max pain is crucial in understanding the potential market dynamics around options expiration.
SumoStrength
Tue Dec 24 2024
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