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


    <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