Cryptocurrency Q&A How accurate is max pain?

How accurate is max pain?

Martina Martina Tue Dec 24 2024 | 6 answers 1301
I've heard about this concept called 'max pain' in the stock market. I'm curious to know how reliable or accurate it is in predicting the settlement price of options. How accurate is max pain?

6 answers

DigitalLord DigitalLord Thu Dec 26 2024
Understanding this theory can be beneficial for traders as it provides insight into market sentiment.

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ShintoMystery ShintoMystery Thu Dec 26 2024
By analyzing the maximum pain hypothesis, traders can gauge where the market believes prices will be when options expire.

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KimonoGlory KimonoGlory Thu Dec 26 2024
The maximum pain hypothesis represents a theory in the financial markets that isn't infallible.

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Stefano Stefano Thu Dec 26 2024
It proposes a specific point in time where a substantial number of options contracts will reach their expiration date without holding any intrinsic value.

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SamsungShine SamsungShine Thu Dec 26 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to traders in various markets.

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