Netflix Inc (NFLX)

[L1ving]

What I was talking about earlier with max pain is..... Because options are so volatile mm's make most of their money off of using their inventory to make small price swings in the pps of a stock which equals huge gains in the options market. You can double you money in one day or lose it all. They usually dont loose. The max pain number is the price in which the most options will expire worthless. It's not always dead on especially during a market rally but its a good indicator of which way the price will go end of week because the closer they get it to that price the less shares they have to buy when executions go through. The same firms that sell the options are usually the same ones making the market so they are always trying to get retail stuck with out of the market trades that expire worthless.