01-16-2013, 06:43 AM
I think Max Pain fails to account for this:
The Market Maker is selling calls to the retail,
The Market Maker and the "pros" own the puts.
My conclusion is: they have more incentive to make calls expire worthless, and maximize the value of their puts. Just my theory !!!
The Market Maker is selling calls to the retail,
The Market Maker and the "pros" own the puts.
My conclusion is: they have more incentive to make calls expire worthless, and maximize the value of their puts. Just my theory !!!