Volente maximum pain analysis shows a level of 127(for SPY) for August option. any comment how will they close SET for friday? Also IWM (russel) max pain shows 70(approximate 700 on the russel) any comments?
Volente your obeservation about bulls is right. Could only profit (scrap) .10 on SPY 129 Aug Puts & IWM Aug 70 puts. But based on max pain theory traded QCOM (max pain=35) Aug 37.5 Puts AAPL (max pain=2.55) Aug 67.5 puts and scalped 0.10/.15 SET might close SPY at 129.5 & IWM @70. big reversal on Friday? I doubt .will fizzle out in a short range.
If it holds tomorrow, then monday we will see some selling. Those gaps under us will get filled over time.
I find the max pain on the indices is usually not as accurate as the equities. I usually do about 20-30 of the big stocks and get my bias for friday from there. Anyone else have any other quirks when determining max pain?
The original call will turn out to be the bottom for the year. Time to back fill those gaps, downside to 1270-1280 before a year end rally to 1335-1340.
Good luck on your call that you have placed ....FOR EVERYONE TO POOP ON!!!! Rennick the comic insult Trader
agree with volente, we have to fill the gap. I think the S&P could easily drop before moving higher. Looks tired and overbought.