I've heard the term 'max pain price' in the context of stocks or options trading, but I'm not sure what it actually means. Can someone explain this concept to me?
7 answers
alexander_clark_designer
Thu Dec 26 2024
Expiration of options contracts plays a crucial role in this scenario.
SeoulStyle
Thu Dec 26 2024
This price point is characterized by the highest number of open options contracts.
Lorenzo
Thu Dec 26 2024
Both put and call options contribute to this determination.
ZenHarmony
Thu Dec 26 2024
At the max pain price, the stock's movement causes significant financial losses.
Sara
Thu Dec 26 2024
Max pain represents a specific strike price in options trading.