Cryptocurrency Q&A What is the max pain price?

What is the max pain price?

Tommaso Tommaso Mon Dec 23 2024 | 5 answers 811
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? What is the max pain price?

5 answers

KimonoGlitter KimonoGlitter Wed Dec 25 2024
Max pain represents a specific strike price in options trading.

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TaekwondoMasterStrengthHonorGlory TaekwondoMasterStrengthHonorGlory Tue Dec 24 2024
It is characterized by having the highest number of open options contracts, both puts and calls.

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CryptoMagician 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.

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Isabella Isabella Tue Dec 24 2024
The concept of max pain is crucial in understanding the potential market dynamics around options expiration.

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SumoStrength SumoStrength Tue Dec 24 2024
BTCC, as a top cryptocurrency exchange, offers a range of services. These include spot trading, futures trading, and a wallet service. These services cater to the diverse needs of cryptocurrency traders.

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