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Re: smagli post# 18597

Friday, 01/18/2013 5:04:33 PM

Friday, January 18, 2013 5:04:33 PM

Post# of 49464
max option pain is usually how it pans out.....

http://optionalpha.com/understanding-the-max-pain-theory-near-options-expiration-13914.html

The maximum pain theory assumes that most of the option contracts (Calls or Puts) will expire worthless on the option expiry date. What happens is that during the last few days of trading for the month, the price of the underlying stock will move toward the pain point.

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