Apple Max Pain Theory 11-17-11
Today’s video
- What is Max Pain?
- Where to look on the Option Chain.
- How to play max pain.
- Profiting from max pain theory.
As many of you know, tomorrow is options expiration. And a very important one at that.
Tomorrow the monthly options expire, not just the weeklies. So in preparation of tomorrow
I thought I would share this video I made last friday.
Trade On,
AAPLTrader-
Today’s video
- What is Max Pain?
- Where to look on the Option Chain.
- How to play max pain.
- Profiting from max pain theory.
As many of you know, tomorrow is options expiration. And a very important one at that.
Tomorrow the monthly options expire, not just the weeklies. So in preparation of tomorrow
I thought I would share this video I made last friday.
Trade On,
AAPLTrader-
Very interesting how you used the option chain,
volume and open interest
to make your trade.
I’m used to just charting, this gave me some new ideas.
cool how you gauged it by looking
at the value left in the $385 calls
and thinking that they would expire worthless
Great video!
Very interesting, thanks for sharing!
I’m a little late to the party but thanks for the peek into your trade. I’m looking into trading software. What software is used here?
Hi Chof, thanks for your message.
This trade was done on ThinkOrSwim’s ThinkDesk.
Thinkorswim is a great broker and has fantastic free trading software for
stock, options, futures and forex.
Make sure you get the free no BS secrets on the right,
so we can stay in communication because in a couple months I am going to
be releasing some really great videos on How To Use ThinkOrSwim that
will be perfect for you!
Regards,
AAPLTrader-
Thanks, I used the think or swim platform today to succesfully navigate my first max pain trade on apple this morning. I appreciate your advice and look forward to learning much more.
Thanks Again, chof
Great Job Chof.
Did you do a bear call spread, short stock or…
What was your strategy?
Thanks-
Yes, a bear call spread. After the aapl pushed towards 385 began to fall again I placed my bet on the 380/385 bear call spread since the heavy open interest was at 380 it would likely move to that strike. Sold the spread for 2.68 and bought it back at 1.00. Only one contract though. I’m conservative because Im still learning.
It seems a little too easy though, Usually it seems that when trades become well known (seen several articles on this trade), they cease to produce. But I will keep looking for similar opportunities and hope to win more then I lose.
Thanks again, Chof