Cryptocurrency Q&A What does "max pain price" mean?

What does "max pain price" mean?

Martino Martino Tue Dec 24 2024 | 7 answers 1997
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? What does "max pain price" mean?

7 answers

alexander_clark_designer alexander_clark_designer Thu Dec 26 2024
Expiration of options contracts plays a crucial role in this scenario.

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SeoulStyle SeoulStyle Thu Dec 26 2024
This price point is characterized by the highest number of open options contracts.

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Lorenzo Lorenzo Thu Dec 26 2024
Both put and call options contribute to this determination.

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ZenHarmony ZenHarmony Thu Dec 26 2024
At the max pain price, the stock's movement causes significant financial losses.

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Sara Sara Thu Dec 26 2024
Max pain represents a specific strike price in options trading.

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