I heard about the concept of max pain related to options and I'm curious to understand what it means specifically for SPY, the S&P 500 ETF. Could someone explain it to me?
6 answers
CryptoAlchemyMaster
Wed Dec 25 2024
Max pain represents a concept widely applied in options trading.
KpopStarlight
Wed Dec 25 2024
It indicates a specific price level where option sellers encounter minimal overall losses.
CryptoMagician
Tue Dec 24 2024
For option writers, this price point is crucial as it minimizes their potential losses.
MountFujiMysticalView
Tue Dec 24 2024
Conversely, option buyers face the opposite scenario at this price.
MountFujiVista
Tue Dec 24 2024
At the max pain price, option buyers suffer the greatest losses.