A site dedicated to open interest Max Pain theory and AAPL options sentiment.
What is Max Pain?
It is a theory which states on options expiry a stock will close at the point where the most puts and calls combined expire worthless — via dollar value. The name is derived on the basis that the most “Pain” is felt to option holders at a certain price or point.
What is open interest (OI) Max Pain and how does it differ?
The original Max Pain theory uses dollar value to conclude where a stock will expire, at an exact strike. Using dollar value misses some very key stock moves or stalls. Switching to OI as a Max Pain range is far superior for trading as we can observe and prepare for probable breakouts or breakdowns. Not only can we be privy to how a stock will react at each strike, our probability using a range instead of a single strike is greatly improved.
This is the only site I know which uses open interest and a range. This site does not use dollar value nor an exact strike. If you recognize Max Pain theory but OI/Max Pain is something new to you, don’t worry. This site is trying to differentiate itself from the “original” to a new “high probability trading” theory.
Williams, Pat. How to Be Like Walt – Pg 158
“Another source of tension: Roy kept pestering Walt to attend stockholder meetings. Walt stubbornly refused. He hated stockholder meetings and consider them a waste of time. But Roy kept pressing, and Walt finally agreed.
Upon entering the room, Walt found himself facing a collection of sober-faced businessman in black suits — the kind of grim faced, tightfisted capitalist bosses he later satirized in Mary Poppins. Walt looked around the room with a sour-milk expression. Then he stood up and read a letter from a man in Florida who owned a few shares of Disney stock. The man said how much he enjoyed Disney movies, then added, “I don’t care if I ever get any dividends. You just keep up the good work and keep making good pictures.” Walt put the letter down, looked around the room and said, “I wish this company had more shareholders like that one. He understands what Disney is all about. Now, it’s been very nice to see all of you, but if you don’t mind, I’ve got a studio to run.” And he walked out, leaving his stockholders in stunned silence.
Roy never invited Walt to another stockholder meeting.”