max painmaximum pain
Welcome to the Weekly Max Pain calculator. There are many monthly stock option max pain calculators. However, there are no weekly max pain calculators, until now.
Max Pain is the point at which options will expire with the least amount of money lost by the option writers. The theory is the market makers are the option writers while retail investors are the option buyers. Either market forces or the market maker will drive the stock price toward the point where most combined call and put stock options expire out of the money. Thus, reducing the cost to the option writer.
The "pain" is the pain to the option buyers, who lose option premiums when options expire out of the money.
Welcome to the Weekly Max Pain calculator. There are many monthly stock option max pain calculators. However, there are no weekly max pain calculators, until now.
Max Pain is the point at which options will expire with the least amount of money lost by the option writers. The theory is the market makers are the option writers while retail investors are the option buyers. Either market forces or the market maker will drive the stock price toward the point where most combined call and put stock options expire out of the money. Thus, reducing the cost to the option writer.
The "pain" is the pain to the option buyers, who lose option premiums when options expire out of the money.