Cryptocurrency Q&A
What is the max pain option?
What is the max pain option?
CryptoGladiatorGuard
Mon Dec 23 2024
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6 answers
1544
I heard about this concept called max pain option but I'm not quite sure what it means. Could someone explain to me what the max pain option is?
6 answers
Raffaele
Wed Dec 25 2024
This strike price serves as a pivotal point, representing the level where the most investors are exposed to potential losses.
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KimonoElegantGlitter
Wed Dec 25 2024
To understand max pain, imagine a scenario where the majority of investors have their options set at a specific strike price.
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ShintoBlessed
Wed Dec 25 2024
If the market price does not align with this strike price by the time the options expire, those investors will likely experience financial pain, or a loss.
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Maria
Wed Dec 25 2024
The concept of max pain price, also known as max pain, is closely tied to the strike prices of options.
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Chiara
Wed Dec 25 2024
Determining the max pain price involves identifying the strike price at which the highest number of options are open.
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