You can visit Maximum Pain com website and/or youtube and/or google this topic.
This works best a week before 3rd Friday, which is when monthly options expirys, but does work on high volume weekly options too. Like everything, this needs to be only one reason in which you should base your trading decisions on.
Maximum pain theory is when Market Makers push and/or buy and or sold a lot of stocks on dark web and/or after afters, to push price action of a stock to where they make the MOST MONEY, when options expiry.
By end of this week, per maximu pain website, where money makers want the price action of Facebook stock to be is inbetween 207.50 to 212.50. This would make them the most money and stock option traders would lose the most money. Lets all see where the price action at end of this week ends.
This works best a week before 3rd Friday, which is when monthly options expirys, but does work on high volume weekly options too. Like everything, this needs to be only one reason in which you should base your trading decisions on.
Maximum pain theory is when Market Makers push and/or buy and or sold a lot of stocks on dark web and/or after afters, to push price action of a stock to where they make the MOST MONEY, when options expiry.
By end of this week, per maximu pain website, where money makers want the price action of Facebook stock to be is inbetween 207.50 to 212.50. This would make them the most money and stock option traders would lose the most money. Lets all see where the price action at end of this week ends.