T/A ETF AND INDEX

[capt_jmj]

"In the money" options are calls (option to buy) with strike prices below the expiration price and puts (option to sell) with strike prices above the expiration price. At OEX, calls above and puts below would never be exercised and thus expire worthless. The Max Pain theory simply says that excluding other influences or factors, as OEX approaches, option sellers (i.e. the pros/boyz) tend to manipulate prices up or down by buying or selling the underlying equity so as to make the maximum number of contracts expire worthless.