MAX PAIN is an entirely BOGUS waste of effort.
1. Most options expire worthless. No one said it applies to one stock or future contract or index. Imagine some stock with a blockbuster drug approval by the FDA tat goes up 30% in a day. there will be lot of in the money calls there making money. MAX PAIN? #$%$.
2. Of course lots of options expire worthless... the ones in the money are usually closed out before expiration. Not many exercise them.
2. continued. so if the in the money ones are closed out, then that means looking at open interest even 1 day before expiration will be misleading... because the in the money ones may not be closed out yet. Also, some people open and close positions even down to the last day. So, looking at open interest that is not real time gives incorrect results. MAX PAIN? #$%$.