Option Max Pain Theory

Discussion in 'Options' started by flipside21, Apr 4, 2012.

  1. How many of you believe in Option Max Pain Theory?
     
  2. Lornz

    Lornz

    <iframe width="420" height="315" src="http://www.youtube.com/embed/pSJiej4yTAY" frameborder="0" allowfullscreen></iframe>
     
  3. When you sell a naked put on a $30 stock for a buck and the stock goes bankrupt, that's Max Pain.
     
  4. Tip only short options on the SPY ETF.
     
  5. How often does this happen? 1 in 30? 1 in a 100? 1 in a thousand?

    And can you improve your odds through research?
     
  6. I really don't now since it has never happened to me. That's probably because I do everything that Elite Traders suggest!

    :D :p :)
     
  7. You must be a billionaire like me and all the others on here :)
     

    • 120 Volt AC Household Light
    • Remove Bulb
    • Switch On
    • Insert Tongue
    • Let Us Know What Happened
    • Take a Long Walk Off a Short Pier


    :)
     
  8. That's about the most sensible suggestion that you have made here in months.

    :)
     
  9. option is my max joy, where is the max pain?

    100 in 100 joy
     
    #10     Apr 5, 2012