I'm interested in learning about the max pain expiry strategy. Could you explain what it is and how it works in the context of options trading?
7 answers
KpopHarmonySoulMateRadiance
Wed Dec 25 2024
By understanding the Max Pain point, traders can make informed decisions.
GangnamGlitter
Wed Dec 25 2024
The Max Pain theory suggests a particular trend in the expiration price.
NebulaChaser
Wed Dec 25 2024
They can buy or sell contracts depending on how the Max Pain point relates to the current market price.
CherryBlossomKiss
Wed Dec 25 2024
This theory indicates that the expiration price often moves towards a specific level.
Andrea
Wed Dec 25 2024
At this level, investors typically face the largest losses.