Mr Cooper Group Inc (COOP)

[lodas]

it looks like the 43, and 44 strike price put options that I sold on monday are doing quite well today, but there are still 3 days until option expiration on friday may 6....so, what will the CBOE MM do until fridays close?....well, about the middle of the week, they will take their profits, and start working the price of coop stock down to "Max Pain", or least payout for all May 6 options....Max Pain is the price point a stock must end up at options expiration which results in the least payout to the exchange...remember, they post the bid and ask prices for all strike prices each month, so they must pay off on these options if the buyer or seller is successful...sort of like in the olden days of horse racing if the bookie holding the bets was sure a certain horse was going to win, he would drug him before the race, so he would not have to pay the winning tickets.... this is why you see the stock prices start to move downward towards expiration, and that is "Max Pain", or the price of the stock for least payout of the options... Lodas