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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: Booda who wrote (4996)2/16/2005 6:28:38 PM
From: Walkingshadow  Read Replies (1) | Respond to of 8752
 
Hi Boooda,

The Max Pain Point is the point where, if the underlying closes at that price, the maximum number of puts and calls will expire worthless. So the options pits will often try to muscle things towards the Max Pain Point if they can because in general, that will be Max Profit for them.

Here's a nice explanation and chart for several stocks (totally free, btw):

ez-pnf.com

Welcome to the thread, btw... contribute whatever you can, ask whatever you like, and be assured you will be treated with courtesy and respect here. We try to help one another here without hidden agendas.

T