how do you use option max pain?

Discussion in 'Trading' started by bathrobe, Feb 6, 2009.

  1. I am not understanding anything I read from searches about this.

    If someone could tell me how they use option max pain it would be a great deal of help. www.optionpain.com

    Thanks,
    Chris
     
  2. The basic idea is, at option expiration a stock will close at whatever price will cause option buyers to lose the most money. In your example that'd be $19 for MSFT.