I'm trying to understand the concept of max pain in options trading. Specifically, I want to know what the maximum pain level of options is and how it affects options traders.
5 answers
KpopStarletShine
Wed Dec 25 2024
Max Pain in options represents a specific price level.
CryptoTitan
Wed Dec 25 2024
This level signifies the point where the majority of options holders face the largest financial loss upon expiration.
GliderPulse
Wed Dec 25 2024
It is determined by the strike price with the highest number of open options contracts.
Alessandro
Tue Dec 24 2024
Both put and call options are considered when identifying the max pain price.
Lucia
Tue Dec 24 2024
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