ajtj's Post-Lobotomy Market Charts and Thoughts Message Board

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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: Sun Tzu who wrote (43916)	11/19/2021 1:20:37 PM
From: Sun Tzu	Read Replies (3) of 97805

If you check the max pain site now, you see that QQQ max pain is now 10% below the spot price, whereas at yesterday's close it was 5% below. maximum-pain.com I should have made a note of OI yesterday, but I didn't :( However, I am willing to bet that the sudden 40 point drop about 30 minutes ago was due to call options rolling forward (or cashing in). The exodus of at money call options is the most likely reason why the max pain dropped which in turn would push the cash market lower which in turn pushes NQ lower. If you look at the 15s bars of NQ, It is hovering +/- ATR of the period within a range. Then that range gets broken, but it will continue in a stepwise fashion with the ATR range as the calls roll forward. As the day goes on, the range tightens b/c there are fewer options left and nobody wants to hold a position over the weekend. This is why I was comfortable to sell and go for lunch and do other things.

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