In the short term, the market is a voting machine. But, in the long term, the market is a weighing machine. - Benjamin Graham

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. - Robert G. Allen

To learn new things; you might need to unlearn old thought and tricks. Both processes can never be achieved without humility.Ajaero Tony Martins

Monday 4 December 2017

Calculate Max Options Pain Chrome Extension


Option Pain, or sometimes referred to as ‘Max Pain’ has a significant fan following and probably an equal number of people who despise it. The theory of options pain stems as a corollary to the belief – “90% of the options expire worthlessly, hence option writers/sellers tend to make money more often, more consistently than the option buyers”.

This is still a very young theory as the origins of Option Pain dates back to 2004. If one can identify this price point, then it’s most likely that this is the point at which markets will expire. The ‘Option Pain’ theory does just this – identify the price at which the market is likely to expire considering least amount of pain is caused to option writers.

Here is how optionspain.com formally defines Option Pain – “In the options market, wealth transfer between option buyers and sellers is a zero-sum game. On option expiration days, the underlying stock price often moves toward a point that brings maximum loss to option buyers. This specific price, calculated based on all outstanding options in the markets, is called Option Pain. Option Pain is a proxy for the stock price manipulation target by the option selling group”.

- What is MaxPain?
- How to use Chrome Extension?
- What is PCR?

https://chrome.google.com/webstore/detail/nse-options-strategiesmon/pkhllhkcehbcajnafpabiegolmcekchi?utm_source=gmail

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