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.