Dec 21 and Jan 18 Line max pain is 30 and todays weekly is 30.50. Lnco max pain for Dec 21 is 40.00 and Jan. is 31.00. Not sure what to make of the Lnco Dec. 40 number or this crazy price action we have been getting this week. I`m deploying a hold strategy until I can make some sense of this price action. The fundamentals are on our side and we look to be going from overbought to oversold in a hurry.
"What is Max Pain?
In Options Trading, the Max Pain theory, sometimes also called Strike Price Pegging focuses on the idea that towards expiration date the price of a stock will move towards its strike price thus inflicting most losses (pain) to the majority of option traders as all parties with high investments try to steer the stock price towards their calls or puts to minimize their losses. Max Pain calculations on our site use g intraday data and are up to date to within 30 minutes."