hbf5: I guess the idea would be if you play options game is to mimic the "sellers" around the max pain activiity
sybil forgot to mention a very important advantage that institutions have over retailerz that dare to play against them in both the stok and particularly the timed optionz areana:
A complex communicationz network to the mass media for which to control giganic herdz of sheeples behavior to such a pervasive extreme that they can convince the public massez to buy with a smile at the very tops and sell while they are crying at the very bottoms of markets with a sense of relief that they did so - very powerful : influencing behavior.
Couple that with the fact that they have the full backing of the fed as 'too big to fail' and the surety of bring bailed out when they get it wrong without 1 cent of 'moral hazard'.
Again, unless you have all of these aformentioned capabilities and / or fully recognize that you dont then you should not play any component of the markets, particularly crack head optionz.
Dealing options iz like strapping on a suicide vest, and then posting a video on utube telling the world the date time and place (strike price) that you will blow yourself up... Even a palestinian terrorist iz smarter then that, plus they get 21 virginz in the end where you just end up broke.